In a recent Forbes article, the authors give a ringing endorsement of the power of global sourcing for businesses:
“Although the relative cost of manufacturing in China has risen in recent years, the country is still often the cheapest location for American retailers and manufacturers to source goods or parts.”
Many entrepreneurs and small-business owners assume that successful sourcing from China requires opening local offices, hiring staff and making other investments that are impractical below certain revenue levels. However, a global sourcing firm with business expertise, established relationships and the experience to navigate the Chinese business world opens up an entirely new approach to doing business for companies interested in sourcing materials from China.
It’s a major landscape that can be difficult to navigate. All an entrepreneur has to do is visit an online sourcing platform to recognize that hundreds or even thousands of potential vendors in every area are listed. There’s a massive opportunity to identify new sourcing partners. Yet with an online search it’s hard to tell which companies are legitimate, which have the manufacturing capabilities to meet demand, and whether their customers are happy. A knowledgeable sourcing partner can vet potential Chinese suppliers, eliminating stress by developing a short list of potential candidates.
Due diligence requires time, expertise and resources. There are numerous avenues that can be used to connect with suppliers. Entrepreneurs need to begin with some understanding of the Chinese market. When evaluating individual suppliers, it’s important to understand the company, its management team, its products, quality assurance programs, production capabilities, credit and financial terms and other components of how they do business. Chinese language skills and the ability to navigate Chinese business regulations and culture are helpful to this process. A local presence for site visits and face-to-face meetings is also important. An established sourcing partner can conduct due diligence and provide answers to all the questions that arise.
Accelerate progress by partnering with a sourcing partner. It’s easy to become overwhelmed with thoughts on visiting trade shows, reviewing audited financial statements, making site visits to plants and negotiating terms. But sourcing from China can provide a significant competitive advantage for any company and immediately impact a company’s bottom line … provided the company partners with the right firm. Working with an establishing global sourcing expert, like Mawson Global, allows companies all the benefits of a Chinese supplier while dramatically minimizing stress, travel and costs. Sourcing partners can manage the process end-to-end while communicating regularly throughout the process.
Are you ready to explore the advantages that working with a Chinese supplier could bring to your business? Contact Mawson Global today to discuss your company’s specific needs and learn more about how our Asia team’s global perspective and local expertise can work for you.