1.How much can we expect to save by sourcing from China?
You can expect to save about 20-40%.
Since the manpower cost is low in China, sourcing from China will help you save
on purchasing costs and significantly improve your market competition.
2.What is the general process of sourcing in China? We
can make it easy!
Sourcing from China is relatively easy.
Simply send your inquiry, and we will handle the rest.
The general process is:
* Inquiry , Quotation , Cost Confirmation <15 days>
* Building mold and tooling and initial samples approval <20-60 days>
* Mass Production and delivery for each order < 30-45 days>
Initially, you may need to send us inquiries with samples, drawings and annual
usage quantity. We will quote the cost and feasibility study for your
product(s) within 10 days.
If the cost is acceptable to you, we
will build the tooling, mold and do quality checks for you. Initial samples
will be offered to you within 20-60 days. After that, there may be some
feedback from you with some corrections. This will take another 15-20days. Then
we are ready to start producing your order.
Generally, for each order delivery, it will take 30-45 days for production.
Then we can ship your goods to you.
3.What is your quality level and supply capability?
All of our manufacturing plants are
ISO9000 certified. We are implementing ISO/TS16949 quality systems and are
using numerically controlled CNC machines. We can also use process control
(PPAP, SPC, etc.) per customer request.
4.I have heard many stories about failure with sourcing
in China. How can I make it successful?
The key factors for the success of
souring in China include:
1) precise technical translation
2) excellent facilities with engineering teams that have a good knowledge
of the customer's quality requirements
3) working with a professional who is knowledgeable about the local
Chinese industry,technology and cost level
4) local, on time, technical support and quality control
5) services enabling foreign currency transactions and shipment to the
customer鈥檚 warehouse
We have combined all these factors within our company.
To guarantee a successful sourcing job,
you definitely need an outstanding partner and support system that can
completely provide.
Without this system, randomly choosing
manufacturing plants by searching the internet is generally risky. Thus, some
failure stories may have been caused by the following reasons:
*Sometimes, the plant, in reality, is not the same as how it is represented on
the internet
*The American and Germany technical drawings are quite different from Chinese
drawings. Very few plant engineering teams have professional English and
Germnany translators. For an English and Germany drawing, if only 5-8% of the
specifications are mistranslated and/or not well understood, the mass
production situation is out of control.
*Without local quality control at the job site, customers can only see products
when they arrive at the warehouse, 30-40 days after shipment. For a component
with 20-30 spec requirements, it is highly possible that there are product
flaws when the customer finally receives his product(s).
*Local quality control audits are often not implemented. 1-2 months after
shipment, when a product is found to be incorrect by the customer, it is
generally not an easy task for the plant engineers who speak Chinese to
understand the problem correctly. Consequently, it is best to send corrections/feedback
to the manufacturer as soon as possible.
5.What kinds of items are suitable for sourcing in China?
The most suitable components are:
Higher volume parts: It is more economical, with limited efforts, to
manufacture common products because when the purchasing quantity is large the
customer will significantly save on purchasing costs.
Labor intensive parts: If labor costs, such as machining, welding and assembly
are the major cost portion of a component, then it is suitable for sourcing as
the labor costs are low in China. Consequently, customers will greatly save on
purchasing costs.
6.How should a good inquiry be prepared? How long does it
take to receive a quote?
It is very helpful for a customer to
include drawings, expected purchasing quantity and samples when sending
inquiries. Samples are always very helpful to give a confirmed price and
determine the most efficient manufacturing process.
Usually, it will take 7-10 days to send out a quotation and feasibility study
report.
7.How long does it take to get a sample for approval?
For simple machining, we can ship out
samples within 7-10 days. For casting and stamping jobs that need new tooling,
generally; we can finish building the new mold, tooling and submit initial
samples in about 45-60 days, including all of the material certificates, size
and tolerance checking reports.
8.What is your payment term for tooling costs? Is it a
risk for us?
For the tooling costs, the customer only
needs to pay 50% in advance. We will bear the rest of the costs from our side.
This way, we will share the risk in developing a product together with
customers. After the sample is approved, the customer is to pay the remaining
50%. If, for some reason, the project is a failure, we will return the
50% down payment to our customer.
9.How much time does it take to get ready for production?
In most cases,
it will take approximately 45-60 days to have the product(s) ready for mass
production.
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