Archive for January, 2010

The Chinese Sampling Process

When it comes to being a successful importer from China, the key isn’t just finding a good supplier, but also getting that perfect sample. Often the sample process can be frustrating and time consuming, especially to those that are new to the importing game. As is with any other part of the importing process, to get consistency in your results you have to put a system in place that manages your supplier during the sampling stage.

Having sourced everything from clothes to heavy machinary, we have seen almost everything that can go wrong or right during the sampling stage.

To help you get the perfect sample as smoothly as possible, here are some key milestones, industry norms, and pitfalls that you will need to be aware of when getting your sample made in China:

1. Preparing for the Sampling Stage:

The Chinese are masters of copying, so if you want an exact replica of your current product then send it to them. Often information such as drawings, diagrams and measurements can be ‘lost in translation’; this is why we recommend that you send your prototype or sample directly to the manufacture.

If you are just getting started on your product, then having your prototype made domestically will enable you to have greater control on exactly what you want. Having your prototype made locally often also works out cheaper then doing it in China, given added on-costs such as freight.

2. Selecting Your Sample Makers:

The key to getting that ‘perfect’ Chinese manufacturer is to contact as many as possible. This may mean that after contacting and researching your industry you will have a number of suppliers that you may wish to get samples from. Normally ChinaDirect will narrow the manufacturing candidates down to 6 or so ‘promising’ suppliers. From that group we would normally send request for samples to around 3 suppliers. Receiving samples from at least 3 suppliers will enable you to have a significant understanding of the manufacturing quality China is capable of; and also allow you to compare between a number of company’s before you make a decision on who is best for you.

The reason we don’t send out samples ‘willy nilly’ to all that we have contacted is that the sampling stage can involve a lot of back and forth and can somtimes be quite expensive, especically if you a dealing with multiple suppliers.

3. The Process and the Cost:

As I mentioned before, the sample process can be a costly exercise depending on the product you wish to have manufactured. In most cases, suppliers will charge a sample making fee and this fee is often related to the uniqueness, value, and readiness of the materials needed to produce the sample. Products such as machinery are more complicated then samples for clothing and thus costs may be higher.

When you are trying to work out how many potential suppliers to send samples to, and the costs associated with them, make sure to ask yourself the following questions:

- Will custom moulds have to be made?
- Will the supplier have the exact material I request or will they have to source it externally?
- What about the colour? Do they have the right Pantone Colour Code available?
- Does the supplier currently have the right skill sets and equipment to produce the sample or will it have to be outsourced?
- How long will it take to get a sample made?

Sometimes a manufacturer will be able to supply you with a free or cheap sample if they already have everything needed to produce the item. However, when thinking about getting samples, make sure you think about all areas of the sample’s production and what costs may be forwarded onto you.

To better safeguard and create a level of understanding between you and your potential manufacturers, you may wish to think about using a Sample Making Agreement which contains a detailed description of the product, quantity to be supplied and cost. This agreement also sets out specifically your and your supplier’s responsibilities in regards to the manufacturing of the sample product. For more information about a Sample Making Agreement click here.

The First Step for Importing Goods

When importing goods from China, there are three major steps that are key to effective trading. They are Research and Tender, Sampling and Contract Negotiation and Order and Delivery Management.

The 1st stage for importing goods is the Research and Tender process. This includes finding and certifying applicable suppliers for your products. This step marks the most important area of the system for importing goods. In order to be effective at importing goods, you have to first build from a solid foundation. It can be simple to find manufacturers online, sites like globalsources.com and madeinchina.com can supply you a wealth of manufacturers for the product you want to import. However! The key issue to realise when importing goods directly from associates of such sites is that generally a few emails is not enough to work out the good from the bad. When importing goods some critical questions and procedures need to be taken. In order to ensure your potential manufacture is right for your business, it will require you to do some background checks.

Some areas worthy of investigating include:

- REPUTATION – Ask for testimonials of previous customers.
- EXPERIENCE IN EXPORTING – Where have they exported to previously? Are they capable of importing goods into western countries? e.g. Australia, Europe etc.
- QUALITY AND WORKERS SKILL – Can they can demonstrate the most complex and high quality merchandise they have produced?
- SERVICE ATITUDE – How fast do they reply to your enquiries? What is the quality of their responses like?
- FACTORY CAPACITY – Are they to small or huge (e.g Minimum Order Quantities)? Are they be able handle bigger orders as your business expands?
- ABILITY TO FOLLOW INSTRUCTIONS – Ensure your potential suppler can clearly understand and follow your instructions and requests.
- WILLINGNESS TO COMPLY TO QUALITY STANDARDS- Ensure that the supplier is committed to developing a long term relationship that includes making sure your quality guidelines are delivered whenever you are importing goods from them.

The first stage for importing goods is normally where the most effort is involved. Before you start investing in the sampling or manufacturing process, it is critical that you first manage the risks involved in importing goods by ensuring you have found a supplier that is trustworthy and right for your importing needs.