Let us suppose that you have made plenty of effort in designing and developing your product and now you want to productionize it. You have heard enough about China, which can be the best country to manufacture your product as it can increase your margin heavily.
Now in the quest for a certain proven China sourcing solution you have started your dialog with quite a few Chinese manufacturers, whom you must have either met at a certain product exhibition or you have searched out from the net.
Now you want to finalize your suitable production partner who should be your well-proven China sourcing solution. So, you must ask the following few questions to find out whether your objectives can be very well met.
1. How much are you aware of our business?
If the supplier is interested to do a regular business with you then you need to evaluate how much he understands about your product and business to evaluate his suitability.
2. How are you going to allocate your resources to our projects?
The company’s internal resource allocation strategy must be properly understood by you. If you don’t have this understanding, you can get frustrated if you don’t obtain the assistance you require.
3. How do you generally manage your new product projects?
Your success depends on your ability to launch a great product quickly. When choosing suppliers, make sure they have the skilled personnel, established procedures, and support systems you require.
4. Can we visit some of your suppliers of critical components?
It is critical that you visit a few important component suppliers to learn about their capabilities and working relationships with the actual contract manufacturer rather than relying entirely on your contract manufacturer to handle everything.
5. Are you going to be enough transparent so far as the cost aspects are concerned?
Suppliers may have a tendency to hide the cost breakdown. Either they are not trusting you, or they wish to conceal some margin. However, it is not advisable to rely on vendors who are reticent to share a full breakdown of their BOM.
6. What are the toughest challenging quality issues that you have solved so far?
Ask for an illustration of a challenging quality issue they have ever resolved to confirm how they handle their quality concerns. Analyse what was done, the methods and tools that were employed, people in charge, and the eventual the outcomes.
7. Can you propose your project schedule?
For every business, project schedules can be a critical part. Often you may come across a few hardware start-ups has delayed the complete project schedule because of inadequate professional input from supplier.
8. How will you protect your customers’ Intellectual Property?
Several companies search for proven China sourcing solution and hence you need to be careful about your IP protection as China has got a bad reputation on this aspect.
9. Have you any plans for moving production to a certain lower-cost region?
Often contract manufacturer in China try to relocate to a certain low cost region their sub-suppliers. To ensure your secure supply you must know well in advance.
10. Will you allow our quality team to visit your production facility?
Never assume you are interacting with the manufacturing facility where your product will be produced. They will have an issue with this request if they happen to be a trading company. They will dodge the subject, be vague, or flat-out refuse to answer!
11. What is your present quality system?
You must be aware of how your prospective manufacturer handles the quality issue in their production set up. That will give you a flavour of what you are likely to get in the future.
12. How many workforces have you employed?
How many of them are local employees in particular? How many are rural residents? How many are employed full-time versus part-time (i.e., do rice farmers or pickers work on this project)?
13. Who are your major customers
Which nation are your top five buyers from? (Do they also sell online, through stores, or through wholesale?) Can any of them be reached?
However, before taking your final decision, you must remember the following dos and don’ts so that you can make the right decision about your prospective proven China sourcing solution
- Choose a package that makes it easier to develop a lasting business connection with your supplier and also a sourcing agency. Everyone who participates in enduring relationships will gain from them, especially when you are prepared to enter into a long-term agreement.
- Select a source that offers many verification techniques to reduce your overall risk. Also, you should think about factors like your agent’s ability to visit the plant and whether or not their licenses are current and legitimate. This is a fantastic technique to keep you safe.
- As a novice, entrust a sourcing agency having a local presence who has the experience and provides a continual production management package. Utilizing the abundance of information your agent must give a fantastic method to reduce stress.
- Make sure value-added services, such as debugging during production or taking images for your e-Commerce site, are all included in your bundle. Value-added services may incur additional costs, therefore it is crucial to be watchful and confirm the relevant standards.
- Avoid choosing the lowest options to prevent being let down by poor quality.
- Don’t be persuaded by sales people who offer “free services.” There is nothing in this world that is free, eventually, you will have to pay for what is provided.
- Instead of focusing exclusively on cost, consider what your agent can offer and how reliable their credentials are. Find a sourcing representative that is dedicated to meeting your particular requirements and who is open and honest throughout the procurement process.
All the questions that have been mentioned above will make a better impact if you ask during your face-face interaction rather than through email while looking for your proven China sourcing solution. Any salesperson may not be the tight person to ask these questions.