China offers a supremely efficient workforce, lower production cost and state of the art infrastructure, making this country the best place for manufacturing all types of products. By following the correct approach, you can take home maximum benefit out of your China venture. China’s integrated supply chains are a key advantage when it comes to fast-tracking your China sourcing supply chain. Its production ecosystems offer a hard-to-match concentration of input suppliers, assembly factories, skilled workers, and service providers — all at a massive scale and for a broad range of low-tech, mid-tech, and even high-tech products.
China-based factories produce goods for the global economy. They have scaled their manufacturing capabilities well beyond what was ever believed possible. When you go for China sourcing, you’re working with time-tested factories that have been producing quality products in similar industries as yours for years on end, and in massive supply. Even as other considerations gain relevance, finding good value at a reasonable cost remains a sourcing priority. China is at a stage where rising productivity and quality gains are high enough to partly offset the effects of its rising labor, property, and compliance costs.
The ocean freight from China to the U.S. takes far lesser time when compared to other Asian countries like India. China’s superior infrastructure and lightning fast transportation options are simply amazng. The China product sourcing operations of organizations are particularly helpful during high consumer demand. And China does still hold some major competitive advantages over its smaller manufacturing counterparts, despite its rising wages. Some sponsor efforts to develop total-cost-of-ownership models that show whether the benefits of sourcing in China outweigh the additional logistics costs, lower inventory turns, and risks to quality (exhibit).
Increasing Sophistication and Capabilities of China Sourcing–
Many of China’s factories have improved a great deal with respect to manufacturing capabilities, efficiency, management sophistication, and customer service. It’s possible to source factories offering value added services in design and engineering related areas and reduce total product development and total lifecycle costs. China’s current outsourcing market is growing an estimated 30 percent annually, and many countries have relocated their headquarters to China to establish businesses. Manufacturing in China opens a world of possibility to create a wide range of products and innovations. In addition, bringing product manufacturing to China allows you to create a higher volume of product for reasonable cost.
Don’t Deal with Chinese Manufacturers that Quote the Lowest Price–
The lowest price concept in China is a trap set up by the unethical manufacturers. Most of the time foreign importers are lured with amazing product images and unrealistic assurances by the manufacturers and the importers went on to make the deposit without visiting the factory. China sourcing experts always suggest to question yourself how could anyone offer them quality products at a price that is too good to be true. Don’t deal with the Chinese manufacturers that quote the lowest.
Wholesale importing from China is a tough task and wastes a lot of time and money. Getting a reliable sourcing agent is often one of the first approaches for starting up your importing venture. Finding a trusted Chinese supplier is the foundation of your business.