The motto of any businessman is to acquire profit by spending the minimum in production. However, that does not mean that he essentially wants to compromise on the quality of the products. Instead, the goal of an honest businessman is to provide the best class products and services to his customers while making a profit at the same time. To ensure this policy, the rise of outsourcing has occurred in the business world. Outsourcing is an effective way to reduce the cost of production massively yet manufacturing quality products. Businessmen from all over the world have acknowledged the necessity for China product sourcing and turn to the purpose on several occasions. Apart from going easy on the manufacturing cost, outsourcing also takes away the headache of mass production and leaves the businessman free to focus on other important aspects. In this manner, he can take his company to a higher level by introducing new feats and achieving those subsequently.
The cost of production in most of the first-world countries is quite high. Not only that but the businessmen also run from the risk of scarcer supply of raw materials. This is where outsourcing from third-world countries comes in. China, Vietnam, Bangladesh, Singapore, India are namely some of the most famous countries that help the western countries in outsourcing their products. Among these, China has been on top of the list for decades now. From makeup brands to shoe manufacturers to clothing companies, most businessmen have trusted agents in China to speed up the process. China not only offers an ample supply of cheap labor but also has abundant raw materials to ensure a smooth flow of production.
However, just like any other country, China has its shortcomings. Even though the country has gained a reputation in some items of product sourcing, the businessman has to make sure that everything is in the hands of a trusted agent. Without him, he cannot hope for his production to succeed. If you find the slightest hint of lack of transparency in the supply chain, know that it will be a severe problem which will lead to lesser control on the matters and lower visibility in the production process. Take a look at the following problems to know about them and get an understanding of how to deal with them:
1. Supplier Qualification And Screening –
With plenty of trusted suppliers in China, you can hope to find one wherever you look. The suppliers are excellent in their fields and have proved their worth to several other businessmen before you. However, there are some factories that keep their suppliers a secret and do not disclose this information to the business owner. They do this in order to extract a higher price from the businessman since he has no idea about the supplier and his demanded fees. To avoid being fooled, it is the first and foremost duty of a responsible businessman to find the hidden sources of information and ask the agent for absolute transparency in all matters.
2. Secrecy Of Information –
China is sprawled with small and big factories here and there. While some companies split up in sister partners so as to make the production process easier, there are others who can think of fooling you in this process. As you hand over your business to them, are you sure that everyone involved in the production belongs under the same umbrella and that you will not be cheated by anyone? Even if you research extensively before reaching out to them for outsourcing, chances are that you might never get 100% information on them. Moreover, some Chinese suppliers have a bad reputation of lightly treating the customers’ IP. The dishonest suppliers are not trained enough to know that they are violating the rules of China product sourcing by manhandling the customers’ IP. This situation has mostly risen due to an excessive population and a lack of education in all.
3. Purchasing Materials –
As a businessman, it is your duty to provide the best quality products to the customers. However, are you sure that your agent is giving the best materials to you? Often, some dishonest suppliers come up with counterfeit product parts and use them in mass production. Without testing, you will not even realize that you are being fooled and are given some second-grade products. While there are some reliable agents in China, the above-mentioned exists as well, and these people merely try to rob you off your hard-earned money. The best way to avoid this problem is to lab test the products after receiving them even though the procedure will be expensive.
China does not have any dearth of good factories and agents. Several sourcing companies in China have their tie-ups with reputed brands and diligently look after the production on their behalf. But you have to remain careful at your end so as to prevent your business from going down in the gutter. Even though some of the importers have to face the above-mentioned problems, these can be avoided easily if you are being careful. Make sure to establish a good connection with the agent for efficient product sourcing at all times. Since the agent will be the spokesperson on your behalf, keeping a clear relationship with him is beneficial. The sign of a good agent is to try and expand the business as much as possible and monitor the vendors for the best quality materials. Before putting the responsibility on his shoulders, it is your duty to fly down to the country at least once to check on the procedure yourself. By doing so, your rapport with the agent becomes stronger, and you can be assured of success. The country is trying its best to offer you the best agents and vendors so that most western countries come here for outsourcing. It can be well hoped that China will be cured of its existing problems in the coming years and rise to be the unbeatable one in the matters of outsourcing.