In our interconnected world of ours, we have become connected like a world. With the advancement in technology and science, distance has become just a myth and everything seems to be a part of just one large market. Today, if you have the resources, then you can source any item from anywhere in the world.
The Internet has made e-commerce possible and today it has allowed people to do business with any company in any corner of the world. This has never been the case before. It is due to this new interconnectedness that companies today can source their materials from anywhere in the world. China has emerged as one of the biggest giants when it comes to sourcing and supplying all kinds of products to global companies.
There are so many Outdoor Products Sourced From China that you would be surprised. China, today, contributes to almost 30% of global manufacturing. The suppliers of china, due to their resources and abilities, can offer their products at unbelievable prices. If you try to, then you will fail to get the products at these rates in local markets.
Reasons for china’s growing export
Outdoor Products Sourced From China form a large chunk of the global market. There are a few reasons for this. Let’s discuss them:
1- Since the population of China is the largest in the world, the population has to offer a large amount of skilled and unskilled labour at unbelievable rates. This allows you to cut the cost of production.
2- China has a set of highly skilled manpower.
3- China has realized the potential of a large population. It has developed the best infrastructure in the world which is conducive to the manufacturing industry.
4- China can produce a large number of products and finished products with ease. Other countries will not be able to offer this level of service to you.
5- The currency in China is undervalued by 30-40%. What this means is that you will have to pay lesser than you should because of the currency exchange rates.
6- China follows a “dumping” policy. This means that when China exports to other nations, it can offer the products at a cheap rate, which is cheaper than that it offers in its domestic markets. Many times, this rate is even lesser than the cost of production.
This has made sourcing products from China the new norm in global markets. Many expert consultants can help you to procure the goods and manufactured items from China at the right rates. They become more important when seen because the majority of manufacturers in China speak mandarin.
The professionals that you hire are natives and hence are fluent in Mandarin. They are also proficient in English. If you are planning to get Outdoor Products Sourced From China then you must also get one of these professionals who will help you in preparing a proper strategy for conducting business with Chinese manufacturers.
Steps involved in sourcing process
If you have come this far, then it means that you are interested to know more about the process of Outdoor Products Sourced from China for some reason. The process essentially involves 6 steps. To maintain clarity and mitigate risk, these steps are executed with transparency.
1- Analysis of the products which need to be sourced – this is the first step and it should be done by the supplier and his team. The supplier must associate with people from all departments and must look at different angles on the need for sourcing the goods and services.
The parameters should include the volume of goods required, nature of the goods, packaging material required or not and whether the desired good is a finished product.
2- Assessment of the local market where goods will be sourced – in this step, the supplier must make a complete analysis of the domestic market. Study the market well. Then make a list of the best sources for your products. You should take various factors like cost of production, risk profile, government policies, availability, etc. into consideration.
3- Gathering the information of the supplier – you have now reached the stage of making a list of all the suppliers who offer products of your requirement. You can also choose a sourcing agent which will be easier. After making a list of all the suppliers, compare the production abilities, cost and offers, and the standards maintained by the supplier.
Compare these factors with your needs and requirements. Although the sourcing agent is required to do all the factory visits and study the customer service of the supplier if you hire an underqualified agent, then you will have to go to the factories on your own. Verification of the licence and the details of the registration are essential.
This sept will ensure that you take a minimum risk and that due diligence is followed.
4- Making an effective strategy for sourcing – you must treat your goals as the priority. Jot down your goals and then depending on the risk factor that you are willing to undertake, make an effective strategy that is going to serve you in the long run. Also, analyze whether the supplier is a one-timer or if can you do business with him in long run.
5- Evaluations of bids – in cases where no middlemen are involved, direct quotations can be asked from the manufacturer. Once you have analyzed the relevant factors, make a bid keeping in mind the unit price of the product. This should be inclusive of the cost of transportation and cost of customs.
6- Communicating the quality of products desired, negotiating the price, finalizing the terms, etc. – this is a very important step. The terms of negotiation must be inclusive of the product volume discounts and payment terms. You must negotiate well and communicate in the strongest terms the quality parameters.
After finalizing everything, the manufacturer will send you a sample of the final product.
China has emerged as the world manufacturer but trading worldwide requires a lot of details to have adhered to.