With the increasing number of companies choosing to source products from China; the methods of finding and assessing manufacturers from the area has become a necessity. This is not an easy task since the research process contains certain constraints as in:
- Language barriers – even though English can be used in doing business, knowledge of the Chinese language both written and verbal is an advantage.
- Costly Visit to the Manufacturing Sites– for importers since it will take a long and expensive travel particularly for importers from the United States or Australia.
- Knowledge of Business Environment – there is a great difference of the business environment of importers compared to that of China. Likewise, to develop the knowledge takes time.
- Assurance and Trust is a primary issue with manufacturers in China related to Dealings.
Importance of Assessing China Manufacturers
After finding and sourcing for China manufacturers through website search, trade shows and other services, assessing China manufacturers play an important role in the success of your importing business. First you must have trimmed down your list of potential manufacturers to around 5 to 10. Your next move is to further assess the list based on the following qualifying factors:
- Authenticity of the business – This can be done by checking if the manufacturer is a legitimate business with a license from the local Commerce and Industry Administration Bureau.
- Validity as a manufacturer– There are many cases where a business might be listed as a manufacturer particularly in the internet but in truth it is a business acting as a middleman. Doing business through a middleman will increase the cost of the product as they will be adding their share to the price of the product in order to gain profit for their business too. It is best to check their business license taking note of the scope of the business if it includes manufacturing of products and if such products include those that you want to import from them. Work this out through localized government agencies or through certain China consultants.
- Manufacturing Capabilities – It is best to determine earlier if the manufacturer is capable to meet your present requirements and also if it can supply you in case there is a potential growth in your product demand. This can be done through an actual visit to the manufacturing site where you will be able to see the volume of products that they are producing. Likewise, through the visit, a long-term partnership can also be considered.
- Product Quality Standards – Is the manufacturer committed to producing quality products based on local and international standards like the ISO 9000, ISO 9001:2000, QS9000,HACCP and others?
- Intellectual Property – Does the manufacturer protect the client’s intellectual property? Does the manufacturer have a good company reputation?
- Committed to Supply – The manufacturer must be able to established based on track records that whatever requirement you will have, they will prioritize your orders above all others particularly during peak times.
China has been branded as the World Factory for decades with products that vary in size, shape, usage, make and field. In reality if you look at products in malls, car part supplies, television, gadgets, tires, children’s toys and a lot more, most of these have a china made counterpart. However, because of the great number of suppliers/manufacturers, foreign companies importing products from China will find it difficult to identify the right supplier for their chosen goods. Right in the sense that these suppliers/manufacturers have passed the assessment made by these importers in areas of product quality, reliability and manufacturing capabilities. Only by following the assessment process earlier presented will an importer be confident that they have the right supplier, one that will ensure prosperity for their business in the years ahead.