When it comes to sourcing from Asian countries, you may face certain challenges. Every project has a unique set of requirements and pitfalls that need special care. If you want to ensure the success of your project, you should learn about the mistakes most businesses do while hiring Asia sourcing companies. Read on the blog to find out five major mistakes that you need to avoid making your project successful.

1. Failure in establishing a timeline while sourcing in Asia

Your businesses need to be methodical and consistent from the starting of the project. The project starts with choosing a supplier. You need to create a clear roadmap before starting the project. Given below is an example of a roadmap that you should follow:

  • Selecting the sourcing method
  • Finding suitable suppliers who can meet the unique requirements of your project
  • Verifying credibility of the suppliers
  • Choosing the suppliers
  • Defining quality control strategy

2. Vaguely Defined Standards

You should consider the current vital requirements at the time of sourcing from Asia. An authentic supplier will have a set of clearly defined standards. You should carefully go through the standards to determine whether your team can keep up with the standards or there are some chances of disparity between your team and the suppliers.

You should ensure the following facts:

Supplier Location- Where in the Asia continent is the supplier based. How can this location impact your product costs and shipping?

Production Capacity- A small factory may not be capable of meeting the deadlines when the quantity of the order is going upward. On the other hand, a big company may have the required capacities but do not pay much attention to the small orders.

Production Process- The supplier should put in place a well-organized process. The international reference to ISO certification implies that the supplier follows a standard and acclaimed production process.

Quality Standards- First analyze your product requirements, and then consider whether the suppliers’ quality standards are suitable for your requirements.

It is better to avoid a supplier that does not have a clearly defined set of standards. The first thing you should ask the supplier during your initial interaction with them is the set of standards and norms they follow. Also, you should analyze the standards from a legal perspective.

3. Lack of Due Diligence

Checking the due diligence is perhaps the most important step in this whole process of selecting a supplier for sourcing in Asia.

The due diligence should include:

  • Checking reviews online
  • Verifying all vital documents: registration, certification, and business license
  • Visiting the suppliers’ office and factory

4. Absence of a Well-Defined Contract between Asian Suppliers and Buyers

A well-written contract sums up all the terms and conditions both you and the suppliers have agreed upon. It helps maintain transparency. The contract should be made considering legal issues of your country and suppliers’ country. Both sides will be liable to strictly follow the norms.

5. Lack of Insight into Local Culture

When you are all set to embrace Asia sourcing, you must be aware of the local culture. Having a clear understanding of their language is an added benefit.

Bottom Line

By considering the mistakes stated above, you will be able to avoid huge losses and gain optimal benefits out of Asian sourcing.

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