It may surprise you that approximately 20% of small businesses fail within the first year. There’s no shortage of factors that contribute to this, but working with the wrong material supplier is one of the most common.
Collaborating with a China sourcing company is a great way to handle this obligation, but there are certain nuances you’ll need to understand. This will help you overcome obstacles you encounter and avoid pitfalls you would’ve otherwise dealt with. Let’s explore the most significant challenges you need to prepare for.
Language Barriers
This is one of the most common issues people face when pursuing product development in China. Reputable businesses will have bilingual employees you can communicate with.
This will make language gaps a nonissue. Keep in mind you should always hire a lawyer before signing an agreement. This is true even if the company explains the terms to you.
Chinese laws and regulations are highly complex. You shouldn’t assume that the business you work with has your best interest in mind. Find an attorney specializing in international law to avoid making egregious mistakes.
Quality Control
There’s a chance your China sourcing company will have issues with quality control. This can come in many different forms, such as not having the right standards in place.
The company might also not have a plan for handling issues that arise. It’s worth noting that maintaining perfection across all your products is impractical. It’s not uncommon for large brands to let minor defects slide.
Choose a company that has a comprehensive quality control policy. They should be able to quickly discern problems that arise. They should also have no trouble pinpointing the cause of the issue.
For instance, let’s assume that a large percentage of your materials have defects. It shouldn’t take them long to figure out what went wrong during the process.
Lack of Enthusiasm
You shouldn’t hire a company for contract manufacturing in China if they lack enthusiasm. This indicates they aren’t willing to help you achieve your goals. For example, let’s assume you found a prospective partner for your business.
While they have a large facility capable of handling your needs, they don’t seem to care about your results. Not only will they fall short of your goals, but they could also be difficult to communicate with.
You can gauge their level of enthusiasm by seeing how many questions they ask about your company. They should want to know as much as possible about your needs and operations.
Unregulated Production Costs
This is one of the most difficult issues to overcome when working with a Chinese supplier. Left unchecked, production costs can quickly get out of control. In some cases, they can substantially cut into your ROI.
The company you choose should be fully transparent about what you’ll spend working with them. The more insight you have, the easier it will be for you to make the best decision.
Most businesses will give you a free quote on what you can expect to pay. It’s best to browse different options and then narrow down your choice.
Long Delivery Times
Substantial delivery times can adversely impact your brand’s reputation. In some cases, this could be the deciding factor for whether customers choose you or a competitor. It’s best to assume your orders will take longer than initially advertised.
Manufacturers sometimes showcase delivery speed in best-case scenarios. If production nuances require more work, for example, it could affect delivery time. Before choosing a supplier, consider the factors that could affect delivery times.
Are they able to handle large order volumes? What type of shipping services do they use? The answers to questions like these will help you make the right choice.
Your Provider Outsources Their Services
It’s essential to make sure the provider you choose doesn’t outsource their services. This creates a situation where you have less insight into their operations than you expected. For example, imagine working with a company that advertises certain types of supplier services.
You’d be under the impression that they’ll handle your project in a specific way. If they outsource to another company, you might get subpar results.
Only choose providers who handle everything in-house. This will also help you quickly narrow down your potential options.
Choosing a Material Supplier
The material supplier you work with plays a large role in the results you’ll get. Before making your decision, look into their past reputation. See what other people say about their experiences working with the supplier.
Keep an eye out for how they handle criticism, though. Suppliers that blame their clients for the problems that arise are ones you should avoid at all costs.
Look for fake reviews during your search, as well. These often contain many similar keywords and are posted in large batches. What is their pricing structure like?
The cheapest options are ones you should avoid at all costs. These typically indicate they cut corners and deliver subpar service.
Keep in mind you don’t have to choose the most expensive option, though. There’s a point of diminishing returns regarding what you’ll spend on your supplier. Somewhere in the middle of the price range is often the best option and allows you to keep your budget tight.
Are they easy to get in touch with? The last thing you want is to encounter issues on your own that you can’t resolve.
This can also distract from your company’s other obligations and make it difficult to keep your audience satisfied. With enough due diligence, you shouldn’t have issues finding the right material supplier for your organization.
Navigate Material Supplier Options Carefully
As long as you choose the right Chinese material supplier, you’ll streamline your material sourcing. The info in this guide can help you find the ideal choice for your situation and take your performance to the next level.
China 2 West prides itself on offering low-cost, reliable supply chain solutions to our clients. We offer fast results without sacrificing quality. You’ll learn more about the many benefits we offer when you book a consultation with us today.
