Friday, April 8, 2011

China Sourcing and Product Development. Steps to success

1. Product Development . Before you can start to import your product from China you need to make sure that all of your product development is near to complete. This may include the design and specifications of your product, the design and specifications of your packaging, arranging quotes from local suppliers so that you can compare the local costs with the cost of importing etc. Timeline – As long as it takes! This will depend on the type of product you want to sell including its design, packaging, complexity etc. Remember that Asian ProSource can help you to make a prototype in China for a fraction of the cost.

2. Sourcing China Suppliers In order to import from China you need to find the right suppliers. You will need to conduct serious due diligence or have it conducted on your behalf, on the suppliers you are considering engaging to make your product. The safest way to have this due diligence done is by professionals at Asian ProSource with experience and knowledge of culture in China and the relevant negotiation skills, with a team on the ground in China who can speak the language. Right in the beginning, in order to negotiate the most accurate price for your product you will need to send detailed product specifications to the Asian ProSource office. This will help minimize any changes to prices in the future. Remember it is your responsibility to comply with any product legislation or compliance standards when bringing the product into your home country. Once we have found the right supplier we will negotiate with the supplier on your behalf. This includes shipping terms and the payment terms the supplier accepts. This is extremely important to get right in the beginning to save you problems or issues that may arise in the future. Timeline – Sourcing the right supplier in China can take anywhere between 1-4 weeks depending on the complexity of your product and the method you use to source them.

3. Sampling Process . Once we have found the right supplier to import from China, we will need to negotiate for and source the first samples of your product. In some instances this may be a free exercise or it may be costly depending on the complexity of your product or how custom you need it made. Timeline – Sourcing samples can take anywhere between 2-4 weeks, once again depending on the complexity of your product but also on factory lead times, whether initial samples are correct or need changes etc.

4. Place Purchase orders for mass production . Once Asian ProSource has sourced product samples that are up to your standard including packaging, quality and price we will need to generate an initial purchase order to send to the supplier you have sourced in China. This will need to outline the specifications of your product in detail and the terms of trade. Negotiating these terms well in the beginning will help you immensely in the future, especially if any issues arise. Once your supplier in China receives this, they will begin the mass production of your product. Timeline – The time taken to place purchase orders will depend on your knowledge of the content required and your experience in placing orders. The amount of time can be reduced by employing the services of experienced professional, such as Asian ProSource, to help you with this process. The timeline of mass production in general would be up to 4 weeks, but this will also depend on the complexity of your product and the amount ordered.

5. Quality Control At some stage during mass production you need to make sure that the quality of your products is checked against your initial product specifications. It is a great idea to fill out a product specification checklist that can be used to check the quality against. This will ensure that the products you are wishing to import from China meet the required quality standards and legislation, are actually what you have ordered and paid for and are up to your quality standards. Timeline- This will be completed during the mass production process and may have an effect of 1-3 days depending on any issues that may arise.

6. Importing your Products from China. Here is where you will need to engage a shipping company or freight forwarder to ship your products into your home country and clear them through customs, in order to get them to your door. You should choose a shipper who lets you track the transportation and customs clearance of your products when they are in transit. Asian ProSource handles door to door logistics for our clients, so this is something that you really don’t have to worry about. Timeline - It will usually take up to 4-5 weeks to import your products from China, have them cleared at customs and at your door.

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