Explaining the Ways to Reduce the Cost of China Sourcing

1. EXPLAINING THE WAYS TO REDUCE THE COST OF EXPLAINING THE WAYS TO REDUCE THE COST OF CHINA SOURCING CHINA SOURCING China’s manufacturing industry is growing at an astonishing rate. It is estimated that the momen- tum will continue in the coming years. China’s manufacturers are reporting their best profits in years, fueled by government-led infrastructure spending, a strong housing market, higher factory-gate prices and products sourced from China. CHINA SOURCING COST CAN BE REDUCED IN MANY REMARKABLE WAYS CHINA SOURCING COST CAN BE REDUCED IN MANY REMARKABLE WAYS WHILE PROCURING PRODUCTS FROM CHINESE WHOLESALE SUPPLIERS: WHILE PROCURING PRODUCTS FROM CHINESE WHOLESALE SUPPLIERS: REVIEWING SUPPLIER’S TERMS AND DISCOUNTS Ensure that a Master Agreement exists for all the suppliers. Discuss with your Chinese suppliers as to when you may make procurement savings by altering your purchasing patterns. REVIEW THE PROCUREMENT CLAUSES Opt for a negotiated purchase price that is lower than the initial quote and additional value-add services in a contract that are free-of-charge. GO FOR A SMALL CHINA SUPPLIER INITIALLY When you are first looking for suppliers, you want to try and go with someone who is a bit smaller because they will be hungrier for your business and might be more open to doing something a bit different. MARKET ANALYSIS Compile a list of incumbent wholesale Chinese supplier and potential alternative suppliers. If you are unsure which Chinese suppliers are potential best fits, we suggest to go for a survey and/or meeting with each to review all critical requirements. APPOINT A TRUSTED CHINESE SOURCING AGENT Prominent Chinese sourcing houses have extensive knowledge of the product and industry-insight. Because the sourcing agent handles all aspects of business in China, they have the right capability to understand your production objectives and targets. VERIFY AND MADE THE FINAL PURCHASE ORDER This ensures that only strictly necessary purchases are made. It willcut down on excess costs and storage costs and is a good way to ensure that a company makes procurement savings. THERE IS A GREAT CHANCE THAT THE CHINESE MANUFACTURING COMPANY MAY INCREASE THE PRODUCT PRICE IF YOU DIRECTLY APPROACH THEM. YOUR LACK OF KNOWLEDGE WILL WORK AGAINST YOU. KEEPING CHINESE SOURCING AGENT WHO WILL WORK ON YOUR BEHALF IS A SEN- SIBLE MOVE.