If you are looking for great profit margins it can be hard to beat importing your goods from China. Wholesalers and retailers generally are aware of the benefits of sourcing products from overseas and understand that with a Chinese product there is more potential for both marking up the sales price and also finding products that cannot be easily sourced in the UK, but the idea of importing seems a daunting, risky process so few will take things further.
The best advice I can give is don’t be scared to try it. Start slowly, learn the ropes and soon you will realise that as long as you have a good supplier (which can be the hardest bit), the process is no more painful than ordering goods from Joe Bloggs from the local industrial estate.
Finding a Reliable Supplier
As mentioned finding a supplier is probably the hardest part. There are various online B2B websites available such as Alibaba which offer a simple, straight-forward channel for locating overseas suppliers, but not all online directories are vetted equally. You need to put work into qualifying suppliers to ensure that they're legitimate companies and can supply the products they claim.
A more costly, but safer alternative is attending a Hong Kong or Chinese trade fair, where thousands of suppliers display their product lines. This obviously is more daunting and time consuming but by meeting potential suppliers face-to-face you can as a rule be satisfied that they are genuine suppliers who are not looking to scam you. One should add that this more personal way of doing business up close and personal is very significant in developing business relationships, particularly within Chinese culture. As products will more than often be on show at such events you get the chance to see the range and quality of the product, and you never know, you may stumble across something new that could turn out to be a huge seller in your country.
Ordering Samples
The best starting point once you have found the supplier you wish to use is to explain your business and then request samples of the products you’re interested in. You will generally have to pay for the samples or at least shipping but this is quite normal and you must check what kind of product quality and service a supplier can deliver before you commit to working with them on a bigger investment with more capital.
As well as checking the quality of the samples, you should consider whether the product meets EU regulations, if the packaging is what you are after and what instructions may need to come with the product to ensure they will suit your own buyers. Of course you have the choice of doing some of this yourself in your country but rather than costly reworking why not try and get the finished product exactly as you wish. Be careful to be very specific – dot every ‘i’ and cross every ‘T’. Things can easily be confused in translation.
Final Checks
You should ask your supplier if they have exported to the UK before, and you can see if they are willing to give you references so that you can make contact with people who have bought from them in the past. It is not unknown to be given samples of a high quality and then find that that ‘big’ order you receive looks like it’s been made by a five year old out of lollypop sticks.
Look for similar products in your local shops and see what certifications and small print they carry to see if there is anything you may not have considered. Ensure you have everything covered.
Communication
Once you have selected your supplier and placed your order you should frequently communicate with the supplier about all details of the transaction. You will be again checking that they have a customer service that matches that you were given before an order was placed and gain useful information on things like lead times and any manufacturing issues there might be.
Payment Terms
The most common payment terms in China from my experience are 30-70, meaning 30% is due upfront and the remaining 70% is due when the goods ship. The 30% acts as a deposit and can also allow the supplier to purchase raw materials and tooling. It is possible to negotiate agreements when a final sum is paid once the order is received but you will have to be established with them before you even consider this. How you make the payment should be negotiated to make it as risk free for you as is possible. Some Chinese suppliers are starting to accept paypal which gives you as the buyer an element of protection, but the supplier gets charged a fee for this so more than often they will suggest other methods.
Quality Control
You have various options for checking product quality of your first order. You can take the suppliers word for it that the product is as per the sample, plan another trip to China to see for yourself, or hire a Chinese inspection company to do this for you. The latter two mean more cost so for a first small order you may decide to bite the bullet and put some trust into the supplier.
Shipping
For small quantities or very high value products you might choose to ship by airfreight or use a parcel carrier. The advantage of this is low risk of damage in transit and a fast transit time. However for anything from 70 Kgs / 1 cbm or so upwards you should consider shipping by sea. The transit times are longer (it can take around 35-40 days from Port to Door), but it will be far more cost effective.
If shipping by Sea your supplier will often try and sell to you on C&F / CIF terms, which includes the shipping cost. However you will get stung by hefty charges in the UK that you were not expecting. I would generally advise to buy on FOB terms, which means that the supplier will pay for the goods to be transported to the local Port. Appoint a freight forwarder in your country and get a quote to your door and they will take it from there for you.
Once you have received your first shipment, you can make a larger order with the peace of mind that the importation process was not quite as daunting as you first thought.
Friday, November 30, 2018
10 Ways to Filter Potential Chinese Suppliers Scammers
I have seen so many scams on the web that for me it usually takes just few seconds to spot the signs of a scam operation. However, there are some pointers which could help you to determine whether the supplier is legit or not. Here goes my easy 10 filter system:
1. Products for sale
Just wanted to remind you – if there are branded electronics, designer clothing, shoes & handbags, DVD Box Sets for sale on the Chinese website, it's a clear scam – stay away!
2. Alexa Rank
What is Alexa rank? To cut a long story short, it shows how many visitors visit the particular website. The figure shown by Alexa isn’t the number of visitors but the website's place in Alexa's rank, 1 being the Most visited site in the World. So if a website has Alexa rank of 100 000 – it's the 100 000th most visited site in the World.
These numbers ARE NOT very accurate but generally can be used as a good guideline. If Alexa rank is below 1000 000, website is consider to be fairly active. And same time, I can check reputation and other details shown on Alexa website, such as Top Search Queries.
Some websites can have Alexa rank of only 10 million and still be legit suppliers, though. Especially in tight niche markets where the demand is much lower. That's why you want to look at the reputation and other details.
3. Domain Name
This is a small one. If you see a popular brand name in the websites domain name, it's almost a guarantee that it's a scam. Scammers widely use domain names containing Brand names to build trust. Domains like Nike666.com or iPhone333.com and similar ones are clear signs that a website is a scam and won't be online for a long time.
Also, try to avoid cheap domains like .info, because they could be used to build a large network of sites to save money on domain registration.
4. Company Information
What kind of company's information can be found on the website? Is there a full address with the company's registration number, phone number and fax number? Sure, this all information may be made up, BUT if the website doesn’t have any information apart from a weird contact e-mail, it's most likely a scam.
5. Payment Options
What payment options are available?
If they accept Western Union or Money Gram – it's most likely a scam. But keep in mind that when dealing with suppliers from China, in most cases you won't be able to pay by credit card.
Wire transfer, although totally un-safe, is commonly used payment option. Some companies accept PayPal for regular customers.
6. Contact Emails
This one is very simple – if the contact e-mails on suppliers website are hosted on FREE online service websites (Hotmail, Yahoo etc.), it's a sure warning sign of a possible scam operation. Why? There are two reasons behind it:
1. Products for sale
Just wanted to remind you – if there are branded electronics, designer clothing, shoes & handbags, DVD Box Sets for sale on the Chinese website, it's a clear scam – stay away!
2. Alexa Rank
What is Alexa rank? To cut a long story short, it shows how many visitors visit the particular website. The figure shown by Alexa isn’t the number of visitors but the website's place in Alexa's rank, 1 being the Most visited site in the World. So if a website has Alexa rank of 100 000 – it's the 100 000th most visited site in the World.
These numbers ARE NOT very accurate but generally can be used as a good guideline. If Alexa rank is below 1000 000, website is consider to be fairly active. And same time, I can check reputation and other details shown on Alexa website, such as Top Search Queries.
Some websites can have Alexa rank of only 10 million and still be legit suppliers, though. Especially in tight niche markets where the demand is much lower. That's why you want to look at the reputation and other details.
3. Domain Name
This is a small one. If you see a popular brand name in the websites domain name, it's almost a guarantee that it's a scam. Scammers widely use domain names containing Brand names to build trust. Domains like Nike666.com or iPhone333.com and similar ones are clear signs that a website is a scam and won't be online for a long time.
Also, try to avoid cheap domains like .info, because they could be used to build a large network of sites to save money on domain registration.
4. Company Information
What kind of company's information can be found on the website? Is there a full address with the company's registration number, phone number and fax number? Sure, this all information may be made up, BUT if the website doesn’t have any information apart from a weird contact e-mail, it's most likely a scam.
5. Payment Options
What payment options are available?
If they accept Western Union or Money Gram – it's most likely a scam. But keep in mind that when dealing with suppliers from China, in most cases you won't be able to pay by credit card.
Wire transfer, although totally un-safe, is commonly used payment option. Some companies accept PayPal for regular customers.
6. Contact Emails
This one is very simple – if the contact e-mails on suppliers website are hosted on FREE online service websites (Hotmail, Yahoo etc.), it's a sure warning sign of a possible scam operation. Why? There are two reasons behind it:
- Serious companies will always use their own e-mails – like info@keensourcing.com
- There are lots of scammers on the Internet who copy other companies’ websites and just change the contact details and the websites’ names. This way they instantly get nice looking websites with a full product catalog for free. They just use their own e-mails for the contact page.
7. Whois database
Who Is data base simply gathers and archives domain registration information. You can go toWhoIs.net and find out when a particular domain name was registered and who registered it. There are two things you're interested in:
- When the domain name was registered. Common sense dictates that the longer domain name has been registered, the better are chances of the company being legit. Of course, this is not always the case as there are hundreds of new companies registering their domain names on a weekly basis. Just be cautious when dealing with recently registered websites.
- Domain name’s registrar name – Who Is data base will show you the person’s name or the company who registered the domain name.
8. Pricing
If you're serious about what you're doing, you should have a pretty good idea on how much the products might cost. Once you’re looking for a particular product you should definitely know the retail and wholesale pricing.
If there are price lists available on the website, ask yourself if they make sense. There still will be a lot of products you can source dirt cheap from China, no doubt about that – sometimes you'll be amazed how cheaply the products can be bought directly from the manufacturers. But as an industry expert, you'll know that some products, product categories and models will be more expensive than others.
Why is this important? Because in many cases the pricing on the scammer websites is very odd – for example, products from completely different quality categories are priced very similarly.
Another warning sign is that on scammer websites large groups of products usually will have the same price which won't be the case with a legit supplier. Also, if free shipping is offered for large, heavy products (like LCD TVs, for example) it's most likely to be a scam.
9. Google Search
Why not enter the company’s name or the website’s name in Google's search and see what comes up? Do not underestimate other people’s opinion & experience – if there are bad, negative reviews, leave that supplier alone and move forward. Also, if you can't find any Google search results for the particular company’s name, it could be a sign that something dodgy is going on.
10. Use Common Sense
If it looks too good to be true, it probably is! It's very important to get the right mindset when looking for a new supplier – you should look at every new company you find with 100% skepticism!
This is especially important when dealing with suppliers from China – as you know; websites like Alibaba, Tradekey, Made in China and similar ones are overloaded with scammers. Always take that extra mile to double check everything before dealing with anyone.
A Buying Guide - From the Chinese Suppliers Perspective
Some of the main issues the suppliers face and cover some of the common questions that I’ve seen in the past.
Types of supplier
In China as with the rest of the world, this can vary hugely. One supplier might be a factory with thousands of staff and at the other end of the scale you might have a mother of one working from home to try and pay the bills, along with many middle men in between. The difference in China is that it might not always be that clear exactly who you are dealing with. The mother is as likely to tell you that she is a factory as the factory itself.
The truth is that they could all offer as good a service as the other. The crucial thing as far as the buyer is concerned is that this will affect what you can buy and at what prices.
Types of product
This will also have a bearing on who you can buy from and at what unit prices. There are obviously thousands of various permutations, but to keep it simple I see that there are three main product ‘types’ if you like.
1) Off the shelf. These are made in quantity to the same design and as such reasonably easy to source.
2) Off the shelf with own branding. Also made in quantity, these products might require specific branding to be added to the basic model, so will involve extra printing, design, etc.
3) Bespoke products. These are manufactured to a specific design of the buyer and as such can be harder to obtain.
Why do I need to consider this?
Put in very simple black and white terms (I will cover in more detail below). If you ask a large scale factory to make you 250 small widgets, they simply won’t deal with you as it’s not worth their while. Yes they want to make money, but they won’t make much from that order.
Should you ask the mother of one to get these for you, chances are she will have the necessary contacts, perhaps on the back of another larger order of say 5000 widgets that she sells on in smaller batches.
Obviously once it comes down to own brand and bespoke products, there is additional design and manufacturing involved which will have a bearing on who you can buy from.
Below I have highlighted some of the common questions I come across and helps explain the answers to these from the suppliers point of view:
Paying for samples
Q. I have asked a supplier to send me some samples so I can then make a larger order, but they want me to pay for them. Why are they not trying harder to get my business?
A. If they sent samples free of charge to everyone that asked for them and then subsequently did not make an order, they would be out of business. Even if they stock the samples so have no excessive production costs, they are still essentially throwing away money.
If a buyer agrees to pay for samples, the supplier will view them as being more serious about placing a future order. Money talks as they say.
There will be some suppliers that will send out free samples, and perhaps just ask for the shipping cost to be covered by the buyer, but especially for higher value items these are becoming less common (Unless you happen to be a buyer for a company the size of Tesco’s, in which case they are more likely to hand deliver them).
MOQ is too high
Q. I want to buy 50 of these items but the supplier has a minimum order requirement of 1000 and won’t budge – Why?
A. If it is not an off the shelf item they will more than likely need to make or buy moulds, create specific designs and suchlike. The factories also have to purchase materials and even if the order is small, chances are their own supplier of the base materials might have MOQ’s themselves. All of this can be a very costly investment for a small order. The materials themselves might be difficult for them to source if they need to meet your design specifications.
Production of a specific product also takes time. They will need to schedule staffing and delivery of components even for a small order. The manufacturing process will mean they will be taking resources away from potentially larger orders with more profit in them.
Why would they want to do all this for a low quantity order with a very slim end margin?.
Unit price too expensive
Q. Price I am being quoted is too high. China is supposed to be cheap?
A. When smaller orders are involved, buyers will often discover that prices are not what they expected from China and when they factor in shipping and Duty/VAT that they realise that they could probably source from the UK cheaper.
All of the base costs mentioned in the MOQ section will need to be factored into any unit price they provide you with and they will also need to consider the possibility of not being able to take on larger orders whilst your items are being manufactured.
A factory will ideally want large regular orders, so they might even be trying to put you off by quoting over the top if they see you as a small one off importer. They might refuse to quote you altogether unless you can prove your potential to them.
Deposit required
Q. I have ordered some goods from a manufacturer, but they want part of the payment up front. Is this a scam?
A. No not at all. If a supplier is manufacturing a product for you, they will want part payment up front. Firstly, to show you are serious (it is a non-refundable deposit after all), and secondly to pay for materials.
More than often the deposit will be 30% with the remainder due on completion of the order or prior to delivery/release of bill of lading, etc.
Manufacturing process taking too long
Q. I ordered my goods three weeks ago and I’ve paid the deposit – Why have they not been shipped yet?
A. Very few suppliers will hold large quantities of stock, or indeed if they are factory they will not have surplus materials just laying around waiting for a potential order. One of the reasons is that the factories need to move quickly with the times, so a big selling product right now could be out of favour in a months time. In addition to this, any stock held is essentially invested money that is going nowhere until the goods are sold.
Some products such as the bespoke ones mentioned will take longer to manufacture, as there is more work involved and designs need to be finalised and materials sourced.
A factory production line is not just a few dozen staff sitting round waiting for someone to press a green button on a conveyor belt once an order is received. They will often have a full schedule, some working 24 hours a day. They need to find a slot in their schedule to work on your product.
Often this can panic buyers, as they see any delays such as this a potential stalling tactic that they think will develop into a scam. It’s simply not the case.
Always ask for the lead time before you make an order, but be aware that things can sometimes change.
In summary
A supplier will only be desperate to sell to you if they feel it is worth their while doing so.
If you haggle on price so much that the base line profit they are making is very poor, it’s likely that both the product quality and the level of customer service will suffer too. If you were trying to sell regular orders to two customers, one you were making £10 an item and the other £40, who would you want to impress more?
Finally, most buyers are wary of being scammed. Don’t forget this works both ways. More than likely the supplier themselves will have been scammed in the past or suffered at the hands of time wasters. Treat them as if you would treat your own customers, create a business relationship and reap the benefits of a successful long-term partnership.
How can importers establish a quality standard, and then enforce it? Here are 4 proven ways to handle your suppliers in China and other Asian countries.
1. Insist on getting a “perfect” sample
1. Insist on getting a “perfect” sample
Whenever possible, you should have a perfect sample (i.e. a prototype that is conform in all points to what you want to receive) in your hands before production is launched. The best practice is to get at least two samples, and send one back to the factory with your signature/stamp on it.
This is the most basic way to establish your quality standard. The difficulty will be in the enforcement.
In China, and in South-East Asia in General, factories know that sending very nice samples is what helps them get orders. These perfect samples (prepared by experimented technicians who take their time) are usually better that what can be made in mass production.
Suppliers simply assume that the buyers know it. And in any case, a buyer who has wired a 30% deposit and is in a hurry to ship usually accepts this situation. Many factories count on it.
How not to fall in that trap?
- You should avoid at all cost to settle the payment before the quality of bulk production is approved (either by yourself of by an inspection company).
- You should write a note about what has to be EXACTLY similar to the perfect sample (e.g. the overall outlook, the color, the function, etc.) and get your supplier to sign it.
- You should make a list of the differences that you can live with (see next part).
- Check early in the production cycle. If you can afford it, send either one of your technicians or a third-party inspector in the factory. When? During production, as soon as finished products get off the lines.
This way, you will notice if the factory is not respecting your quality standard. And you will have time to negotiate a solution with your supplier.
If possible, the factory can avoid the same problems on the products that are not in the process yet. And they can rework (or reproduce) the output that you have rejected.
2. Define tolerances wherever applicable
Sometimes it is not realistic to expect a very precise result. For example, garments are generally made by hand, so there has to be a tolerance for measurements (example: 15cm in S size, +/-1cm). In this case, the objective is the comfort of the garment.
Another example: for juvenile products (toys, children clothes…), it should be impossible to pull small accessories off with a force of 90 Newton of less. If you have no idea about the safety issues surrounding your products, you can get in touch with a quality control firm.
Once you have approved some tolerances, put all your specifications on paper and get your supplier’s signature on them. You have already done half the work to establish and enforce a relevant quality standard.
These specifications will naturally become the inspection checklist when time comes to verify quality.
Sometimes it makes no sense to give a tolerance, of course. Here are two examples: “hard disk drive should be 120 gigabits in capacity”; “red color is Pantone TPX-1664″. In these cases, your specification is clear and precise, and the supplier should follow it.
Sometimes it is not realistic to expect a very precise result. For example, garments are generally made by hand, so there has to be a tolerance for measurements (example: 15cm in S size, +/-1cm). In this case, the objective is the comfort of the garment.
Another example: for juvenile products (toys, children clothes…), it should be impossible to pull small accessories off with a force of 90 Newton of less. If you have no idea about the safety issues surrounding your products, you can get in touch with a quality control firm.
Once you have approved some tolerances, put all your specifications on paper and get your supplier’s signature on them. You have already done half the work to establish and enforce a relevant quality standard.
These specifications will naturally become the inspection checklist when time comes to verify quality.
Sometimes it makes no sense to give a tolerance, of course. Here are two examples: “hard disk drive should be 120 gigabits in capacity”; “red color is Pantone TPX-1664″. In these cases, your specification is clear and precise, and the supplier should follow it.
3. Set a limit on the proportion of defects
A defect is an issue that you cannot accept on all products.
In the aeronautics industry, manufacturers have to guarantee near-defect-free products. But for consumer goods such as toys or apparel, such a high quality standard is neither realistic not necessary.
The different types of defects
Some defects are worse than others:
A defect is an issue that you cannot accept on all products.
In the aeronautics industry, manufacturers have to guarantee near-defect-free products. But for consumer goods such as toys or apparel, such a high quality standard is neither realistic not necessary.
The different types of defects
Some defects are worse than others:
- Critical defects might hurt the user (e.g. poor construction that induces an electrical shock);
- Major defects are not acceptable by most buyers in stores (e.g. large stains) or might cause problems in the supply chain (e.g. unreadable carton barcodes);
- Minor defects can be tolerated by most buyers, but only in small quantity.
How to set a limit on the proportion of defects?
The quality control industry uses the same statistics (derived from a US army standard), when it comes to checking consumer goods.
All inspectors, and virtually all factories and traders, are familiar with the contact ofAQL (Acceptance Quality Limits). In clear, the AQL is the highest proportion of defects that you can accept.
For most product categories, the AQL limits are usually the following:
The quality control industry uses the same statistics (derived from a US army standard), when it comes to checking consumer goods.
All inspectors, and virtually all factories and traders, are familiar with the contact ofAQL (Acceptance Quality Limits). In clear, the AQL is the highest proportion of defects that you can accept.
For most product categories, the AQL limits are usually the following:
- 0% for critical defects
- 2.5% for major defects (or 1.5% for relatively valuable goods)
- 4.0% for minor defects (or 2.5% for relatively valuable goods)
As a buyer, you have total freedom in setting these limits. But you are advised to discuss this from the beginning with your supplier, and to get their written agreement.
4. A quality standard suffers no exception
Let’s say a supplier is late, you negotiate a delay with your customers, and before shipment you notice that quality is less than desirable. You still prefer delivering the products, rather than cancelling the order. So you tell your supplier that he can ship out and that next time should be better.
The problem is, the “exceptional tolerance” will become the de facto standard for the factory. Count on them to remember that you can accept less-than-perfect products.
Chinese manufacturers tend to have a “can’t do” attitude after an order production has started. Two of their favorite expressions are “cha bu duo” (it’s off, but not by much, so you should accept it as is) and “mei ban fa” (there is nothing we can do about it now, no need to keep pressing this issue).
You should fight their natural inclination. Ask for re-work and re-inspections, even if it costs you 10 days. This type of efforts pay off handsomely in the long term, as long as the factory can reasonable achieve your quality standard (you will have clarified this if you follow the steps I listed above).
This should be a general rule, except when you are about to stop giving business to a supplier.
Let’s say a supplier is late, you negotiate a delay with your customers, and before shipment you notice that quality is less than desirable. You still prefer delivering the products, rather than cancelling the order. So you tell your supplier that he can ship out and that next time should be better.
The problem is, the “exceptional tolerance” will become the de facto standard for the factory. Count on them to remember that you can accept less-than-perfect products.
Chinese manufacturers tend to have a “can’t do” attitude after an order production has started. Two of their favorite expressions are “cha bu duo” (it’s off, but not by much, so you should accept it as is) and “mei ban fa” (there is nothing we can do about it now, no need to keep pressing this issue).
You should fight their natural inclination. Ask for re-work and re-inspections, even if it costs you 10 days. This type of efforts pay off handsomely in the long term, as long as the factory can reasonable achieve your quality standard (you will have clarified this if you follow the steps I listed above).
This should be a general rule, except when you are about to stop giving business to a supplier.
Choose Right Inspection Service in China
For oversea buyers, it can be difficult to ensure that your goods are handled correctly at manufacturer side. You aren’t going to take the time and expense to send inspectors from your own company to China to check goods, so finding a sourcing agent in China and purchasing an inspection service can be beneficial for you. They are professionals in the field, and they know how to handle these situations. However, like any service that you purchase, there are several questions involved: Where to start? What kind of service should you choose? Lucky for you, Keen Sourcing has our own inspection team which cover the manufacturers all over China. Keen Sourcing provides four types of quality inspection services are usually distinguished. Each one corresponds to a particular step in the production process. They are all part of the toolbox of every importer, when it comes to buying in China.
Pre-production inspection
An Inspector will be assigned to go to the factory and check raw materials and rough-wrought products by a random selection process. All raw materials and outsourced parts should meet client requirement.
During production inspection (also called “DUPRO inspection” in the industry)
The inspector will check the semi-finished, or finished products according to the standards or signed reference samples. If the inspection result is REJECT, the inspector will then notify the manufacturer of any mistakes/quality issues. Keen Sourcing quality management department will discussed manufacturer on the mistakes/quality issues detected during the inspection and assist manufacturer to work out a complete failure analysis report and corrective action plan to avoid further mistakes.
Normally AQL is 0/1.0/2.5 or 0/2.5/4.0 for During Production Inspection. It’ll be up to clients’ requirement.
Sampling plan: MIL-STD-105E/ GB2828.1-2003
Final inspection (also called “pre-shipment inspection”)
The buyer can indicate specific details for the inspector to check before inspection such as the number, process, function, color, size specification or packing details. Keen Sourcing inspector does the final inspection with the inspection standard or signed reference sample before the goods are sent for delivery.
Normally AQL is 0/1.0/2.5 or 0/2.5/4.0 for Final Inspection. It’ll be up to clients’ requirement.
Sampling plan: MIL-STD-105E/ GB2828.1-2003
Sampling plan: MIL-STD-105E/ GB2828.1-2003
Container loading inspection
The inspector will work together with the manufacturers to confirm if the packing meets the packing conditions. The activity can be done in the factory, warehouse or in the transmission process. Furthermore, the inspector will monitor all the products to be loaded.
Pre-shipment Quality Inspections Are Always Necessary
Why Are Pre-shipment Inspections Always Necessary?
The question is generally asked by exporters and importers. And, why wouldn’t they? It’s always an important part of verifying products in conformity with the approved specifications. Quality control isn’t a formality carried out at the supplier’s end, but a strict procedure of evaluating the products before they arrive at the point of destination.
Our recommendations on Pre-shipment inspections are straight and clear. It’s a matter of fact that when a product is inspected for its quality, the problem is identified and resolved quickly. This, in turn, makes the events faster and resolves all possibilities of failures before the goods moves for 30 or 40-day sea transportation.
Experienced Foreign Managers at Factories – A Tale of Truth
It’s true that many Chinese suppliers employ experienced foreign managers for managing key operations, which include, Research & Development, Marketing, and Business Development & More. Generally, you will find a Japanese person or a Westerner in these companies.
In fact, when you are evaluating these companies, you will discover a handful of best practices of these companies, which you always want to see. Whether it is WIP Tracking, Documentation Management, Standard Operating Procedures and more, at the end of the evaluation, you will feel satisfied with the performance of these companies as compared to the general Chinese suppliers.
The dilemma of Pre-shipment inspection continues…
Knowing these many good things about the suppliers would put you in a dilemma. The major question in front of you would be – Shall I rely on their QC methods and skip the Pre-shipment inspection part to save valuable time? Even we feel tempted to recommend you that, but seriously never do such thing.
You should have certain control levels on the inspection for determining whether the product conforms to your requirements or not.
The case of portable Bluetooth speakers…
To preserve the confidentiality of the client and the supplier we’re going to talk about, we wouldn’t be using their real names or identities. This is a real case, and only a few details are altered, keeping the essence intact.
We had a client, who was purchasing portable Bluetooth speakers from the Chinese suppliers. The evaluation gave us a good report on them, which was more than satisfying. They had procured some foreigners for engineering and quality inspection and, seemingly, everything was fine and under control and properly documented.
However, we never let off our quality control procedure and recommended the client about required inspections before each delivery. The goods were ready for the first purchase order, and as recommended, the inspectors did their job of pre-shipment inspections. Surprisingly, the results were a bit averse to what we had anticipated earlier. The portable Bluetooth speakers had too many minor issues and some major issues and as a result, the goods was rejected. The suppliers were asked to rework on their products and resolve the defects.
Of course, we were quite convinced that the quality evaluation at the supplier’s side is going well yet we didn’t relax that quickly and stuck to the basics of evaluation.
From this case, a few pertinent questions were raised, which were totally related to the production on a committed schedule. For example, was the documentation hassled the way out? Did the workers skip an operation or more for keeping in line with the rapid production speed? Were the workers not skilled enough or well trained? Did the QC check the products strictly comply with quality criteria?
We are oblivious to the answers of these questions, but we are sure that these could have been averted. The supplier was embarrassed on its side but was a reliable manufacturer, who owned their mistakes and reworked on the defects. They firmly addressed the root cause problems and took corrective actions in the course of time.
Meanwhile, we think, had we not pressed the inspection at all, and then what would have happened? Had the suppliers drop-shipped a consignment with flaws, then who would have been held responsible?
This is the major reason why we have hands-on approach to ensuring quality control.
How a PSI or Pre-shipment inspection does help?
As an importer, you will have an expected quality of standards. The third party entrusted with the job of professional quality inspection ensures a fair few things for you, which include:
1. Imported goods are in compliance with the terms that are agreed upon.
2. Imported goods are same level as the approved samples.
3. Imported goods are within specifications.
4. Imported goods pose no threat, risks or hazards to the health.
5. Properly and safely packaged for seamless transition.
6. Imported goods should comply with the rules and regulations of the receiving country.
Top 10 Trade Fairs in China
Chinese trade fairs are becoming more and more important as the size of the economy increases and the manufacturing technology level continuously improves. Made-in-China products become increasly attractive because of better quality and good price. Each year, hundreds of thousands of business people travel to China and attend the conferences from all over the world hoping to source or sell needed products and looking for potential business opportunities.
To help the oversea buyers, who are importing from China, to attend the right fair in China, we summarize our experiences and write this blog. Our information about China's top 10 trade shows includes official website, city, pavilion location, featured products, frequency, dates and exhibitors.
1. The Canton Fair
The Canton Fair, has another famous name of China Import and Export Fair. It is held biannually in Guangzhou every spring and autumn since 1957. Canton Fair is such a great conference with the longest history and the complete exhibit variety in China. It has more than 24,000 exhibitors per session.
Official website: www.cantonfair.org.cn
City: Guangzhou
Pavilion location: 382 Middle Yuejiang Rd, Haizhu District, Guangzhou, China
Featured products: almost all commodities you can imagine.
Frequency: Twice each year. Spring session and Autumn session.
Dates for 2018: The Spring Session: April 15–19 (Phase 1), April 23–27 (Phase 2), May 1–5 (Phase 3)
Exhibitors: about 24,000 per session and 60,000 booths
2. Guangzhou International Lighting Exhibition
Guangzhou International Lighting Exhibition is the most influential and comprehensive Lighting and LED trade show in Asia. You can find everything about lighting here.
Official website: guangzhou-international-lighting-exhibition.hk.messefrankfurt.com
City: Guangzhou
Pavilion location: 382 Middle Yuejiang Rd, Haizhou District, Guangzhou, China
Featured products: LED, lighting products, lighting accessories, LED packaging components, optical component, electronic components, measurement equipment, LED display and signage, LED packaging equipment, testing equipment.
Frequency: Once each year
Dates for 2018: Jun 9 – Jun 12
Exhibitors: 25,000+ exhibitors
Exhibition Area: 180,000 gross sqm
To help the oversea buyers, who are importing from China, to attend the right fair in China, we summarize our experiences and write this blog. Our information about China's top 10 trade shows includes official website, city, pavilion location, featured products, frequency, dates and exhibitors.
1. The Canton Fair
The Canton Fair, has another famous name of China Import and Export Fair. It is held biannually in Guangzhou every spring and autumn since 1957. Canton Fair is such a great conference with the longest history and the complete exhibit variety in China. It has more than 24,000 exhibitors per session.
Official website: www.cantonfair.org.cn
City: Guangzhou
Pavilion location: 382 Middle Yuejiang Rd, Haizhu District, Guangzhou, China
Featured products: almost all commodities you can imagine.
Frequency: Twice each year. Spring session and Autumn session.
Dates for 2018: The Spring Session: April 15–19 (Phase 1), April 23–27 (Phase 2), May 1–5 (Phase 3)
Exhibitors: about 24,000 per session and 60,000 booths
2. Guangzhou International Lighting Exhibition
Guangzhou International Lighting Exhibition is the most influential and comprehensive Lighting and LED trade show in Asia. You can find everything about lighting here.
Official website: guangzhou-international-lighting-exhibition.hk.messefrankfurt.com
City: Guangzhou
Pavilion location: 382 Middle Yuejiang Rd, Haizhou District, Guangzhou, China
Featured products: LED, lighting products, lighting accessories, LED packaging components, optical component, electronic components, measurement equipment, LED display and signage, LED packaging equipment, testing equipment.
Frequency: Once each year
Dates for 2018: Jun 9 – Jun 12
Exhibitors: 25,000+ exhibitors
Exhibition Area: 180,000 gross sqm
3. R+T Asia
R+T Asia is the leading trade fair in Asia for doors, gates, roller shutters, windows and sun protection systems. R+T Asia offers great summits with industry experts that give visitors and exhibitors a better understanding of the market and the latest trends.
R+T Asia is the leading trade fair in Asia for doors, gates, roller shutters, windows and sun protection systems. R+T Asia offers great summits with industry experts that give visitors and exhibitors a better understanding of the market and the latest trends.
Official website: rtasia.org/en/
City: Shanghai
Pavilion location: Shanghai New International Expo Centre, 2345 Longyang Rd, Pudong New District, Shanghai, China
Featured products: roller shutters, doors, gates, window covering, internal sun protection solutions, external sun shading systems
Frequency: Once each year
Dates for 2018: Mar 20 – Mar 22
Exhibitors: 6,000+ exhibitors
Exhibition Area: 50,000 gross sqm
4. Automechanika Shanghai
Automechanika Shanghai is established in 2004. Now it already became the world’s second largest Automechanika trade fair for automotive parts, equipment, accessories and services.
City: Shanghai
Pavilion location: National Exhibition and Convention Center, No.333 Songze Avenue, Qingpu District, Shanghai, China
Featured products: vehicle parts, chassis, Electrics parts, electronics parts, electronic control, Design Refinement Systems, tuning parts, Bodywork Repair, Dealer Management Systems, Vehicle Exchange Marts, Vehicle Inspection Services, Dealership Marketing, Service Station Equipment, Car Care systems.
Frequency: Once each year
Dates for 2018: Nov 29 – Dec 02
Exhibitors: 6,000+ exhibitors
Exhibition Area: 330,000 gross sqm
5. Intertextile Shanghai Apparel Fabrics
Intertextile Shanghai Apparel Fabrics show is the world’s best and largest trade shows for apparel fabrics and accessories. Buyer can find everything of cotton, wool, silk products here.
Official website: www.intertextileapparel.com/
City: Shanghai
Pavilion location: National Exhibition and Convention Center, No.333 Songze Avenue, Qingpu District, Shanghai, China
Featured products: cotton, silk, linen, wool, ramie, man-made, coated, knitted, Printed fabrics, swimwear fabrics, Embroidery Accessories.
Frequency: twice each year. March (Spring Edition) and October (Autumn Edition).
Dates for 2018: Mar 14 – Mar 16
Exhibitors: 3,500+ exhibitors
Exhibition Area: 187,000 gross sqm
City: Shanghai
Pavilion location: National Exhibition and Convention Center, No.333 Songze Avenue, Qingpu District, Shanghai, China
Featured products: cotton, silk, linen, wool, ramie, man-made, coated, knitted, Printed fabrics, swimwear fabrics, Embroidery Accessories.
Frequency: twice each year. March (Spring Edition) and October (Autumn Edition).
Dates for 2018: Mar 14 – Mar 16
Exhibitors: 3,500+ exhibitors
Exhibition Area: 187,000 gross sqm
6. Domotex Asia/Chinafloor
DOMOTEX Asia/CHINAFLOOR is the second largest flooring trade exhibition in the world. It’ a leading flooring trade exhibition in Asian Pacific. It brings numerous business opportunities for exhibitors from 100+ countries each year.
Official website: www.domotexasiachinafloor.com
City: Shanghai
Pavilion location: Shanghai New International Expo Centre, 2345 Longyang Rd, Pudong New District, Shanghai, China
Featured products: wood flooring, Resilient Flooring, carpets, rugs, ceramic tiles, ceramic stones
Frequency: Once each year
Dates for 2018: Mar 20 – Mar 22
Exhibitors: 1,400+ exhibitors
Exhibition Area: 140,000 gross sqm
City: Shanghai
Pavilion location: Shanghai New International Expo Centre, 2345 Longyang Rd, Pudong New District, Shanghai, China
Featured products: wood flooring, Resilient Flooring, carpets, rugs, ceramic tiles, ceramic stones
Frequency: Once each year
Dates for 2018: Mar 20 – Mar 22
Exhibitors: 1,400+ exhibitors
Exhibition Area: 140,000 gross sqm
7. Bakery China
Bakery China is the leading event for the bakery and confectionery market in Asia Pacific. It’s held in Shanghai annually.
Official website: www.bakerychina.com/en/index.jhtml
City: Shanghai
Pavilion location: Shanghai New International Expo Centre, 2345 Longyang Rd, Pudong New District, Shanghai, China
Featured products: baking ovens, pasta making equipments, fermenting tools, ice cream making devices, refrigeration units, Baking ingredients, air conditioning machines, refrigeration units, measurement tools
Frequency: Once each year
Dates for 2018: May 9 – May 12
Exhibitors: 2,100+ exhibitors
Exhibition Area: 183,000 gross sqm
City: Shanghai
Pavilion location: Shanghai New International Expo Centre, 2345 Longyang Rd, Pudong New District, Shanghai, China
Featured products: baking ovens, pasta making equipments, fermenting tools, ice cream making devices, refrigeration units, Baking ingredients, air conditioning machines, refrigeration units, measurement tools
Frequency: Once each year
Dates for 2018: May 9 – May 12
Exhibitors: 2,100+ exhibitors
Exhibition Area: 183,000 gross sqm
8. Yarn Expo
Yarn Expo is a leading trade show worldwide for cotton, wool, silk and yarns etc. The exhibition provides a wonderful chance for overseas buyers to gain access to some of the leading domestic suppliers in the industry and to get the latest trend.
Official website: www.yarnexpo.com.cn/
City: Shanghai
Pavilion location: National Exhibition and Convention Center, No.333 Songze Avenue, Qingpu District, Shanghai, China
Featured products: cotton, silk, wool, flax, ramie, manmade fibers, specialty fibers, manmade yarns, blends yarns, natural yarns, blends yarns, fancy yarns, elastic yarns etc.
Frequency: Twice each year
Dates for 2018: Spring session: Mar 14 – Mar 16. Autumn session: Oct 11 – Oct 13
Exhibitors: 320+ exhibitors
Exhibition Area: 11,500 gross sqm
9. China Beauty Expo
The China Beauty Expo is the most famous and largest beauty & personal care trade show in China. It’s an conference that both cosmetics and personal care industry are keen to because that so many beauty & personal care products are exhibited. International top brands come to this fair in large numbers.
There you also can find many small scale factories which provide OEM services for top brands. From them you can purchase products with good quality and good price.
Official website: www.chinabeautyexpo.com/en/homepage.htmlCity: Shanghai
Pavilion location: Shanghai New International Expo Centre, 2345 Longyang Rd, Pudong New District, Shanghai, China
Featured products: skin care, facial care, Beauty equipment, SPA products, body care, fitness machine, slimming equipment, Body shapers nail care, nail art, foot care, perfumes, cosmetics products, Hair care products (Shampoo and Conditioner, Color, Perm, Hair styling products), ,mirror, shower equipment, health machine and so on
Frequency: Once each year
Dates for 2018: May 22 – May 24
Exhibitors: 3,500+ exhibitors
Exhibition Area: 260,500 gross sqm
10. Kitchen & Bath China
Kitchen & Bath China is the largest trade show in China for the products of furniture and furnishing systems for kitchen & bath.
Official website: www.kbc2017.com
City: Shanghai
Pavilion location: Shanghai New International Expo Centre, 2345 Longyang Rd, Pudong New District, Shanghai, China
Featured products: : oven, grid, microwave equipment, juice press, food processing machines, coffee machines, freezing cabinet, kitchen facilities, traditional household products, electrical household appliance, hood & extractor, cooking hob, laundry appliance, utensils
Frequency: Once each year
Dates for 2018: Jun 05 – Jun 08
Exhibitors: 3,300+ exhibitors
Exhibition Area: 230,500 gross sqm
As a sourcing agent, we visit exhibitions every week in Shanghai, Guangzhou, Shenzhen or Beijing to find more and more suitable & reliable manufacturers, to find new products with good price and good quality. There are so many trade fairs every day in different city. Some of them have many great manufacturers while the others just get very less. Hope this article is helpful for you.
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