Basic Guide to Importing From China
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Transcript of Basic Guide to Importing From China
Importing From China
Wensheng Li, MBA, CPSM, CQA
Andrew Rizzo
Agenda
• Opportunities and Challenges • How to Get Started• Finding Reliable Suppliers• Strengthening the Supplier Relationship• Minimizing risk • Q & A
Opportunities & ChallengesThe Success Stories• iPhone & iPod• Nike• Laptops and more
The Horror Stories• Toys with lead paint• Unsafe tires• Tainted pet food, toothpaste …
Getting Started
• Self assessment– Budget– Import volume projections– International trade expertise– Language skills– Product assessment
• Get help!
Product Assessment
Critical Strategic
Non-critical Leverage
Value
Ris
k
What Strategy to Take?
• Indirect– Trading company/Intermediary
• Direct– Deal with factory directly
• Hybrid
Direct vs. Indirect
Find substitution Direct
Partnership
Indirect Indirect / Direct
Value
Ris
k
Identify Suppliers
• Alibaba.com, Globalsources.com, …• Trade shows• Industry clusters• Referrals & contacts
Four Types of Suppliers
Domestic with int’l experience
Domestic withno int’l experience
Trading company
Foreign invested
Price
Yangzi River Delta1% vs. 18.8%
Beijing-Tianjing Hebei Region
Pearl River Delta0.4% vs. 10.2%
Industry Clusters
National Bureau of Statistics 2006
Evaluate Suppliers
• Past performance• Capacity• Time in business • Financial factors• Service• Price (total cost analysis)• International experience (CPSIA, ROHS)
Total Cost Analysis
Before transaction
Trade showSupplier evaluation
Negotiation
Extra charges or VAT?
During transaction
Price
Order placement
Delivery / Freight
Inspection
After transaction
Rejects
Damages
Re-work
Minimize Your Risk
• Develop a good supplier relationship• Quality control
A Good Supplier Relationshipis an Investment in your Success
• Face to face meetings• Top management involvement • Timely payment• Incentive program• Get feedback from your supplier• Educate your supplier• Learn to say ‘ni hao’
Deal With Quality
Before production
During production
After Production
Detailed specificationsProduction samplePackaging detailsContract
Foot on factory floor Inline inspectionSubcontracting??3 Party Quality Control
InspectionCha Bu Duo??
Completing The Transaction
• Freight• Payment• Customs clearance
Conclusion
• It’s easy to find a supplier but it takes effort to find a good supplier.
• Do your home work and plan well. • There is no substitution for face to face
meeting.• Quality is ultimately buyers’ responsibility.
谢谢 !Contact: Wensheng Li
www.linkedin.com/in/wenshengli