Is sourcing in China worth it?Businesses weigh the costs and benefits, in the wake of product recalls and bans.By Mina Kimes, FSB contributorJuly 27 2007: 10:44 AM EDT
(FSB) -- When Amber McCrocklin launched Paws Aboard, she followed a pattern familiar to thousands of smallbusinessowners. McCrocklin, now 35, had created a line of gear for pet owners who like to take their dogs on theirboats. She started by handcrafting boat ladders, life jackets, and waterproof leashes with the help of a localengineer.When the orders began pouring in, McCrocklin decided to shift operations to China, which could trim costs by halfand give her time to design more products to expand Paws Aboard (pawsaboard.com). On the recommendation ofanother Indianapolis business owner, she hired an engineer in Shenzhen to redesign the products for massproduction and let him find a factory to do the work."It worked for the guy who recommended it, so I wasn't really worried," she says. She immediately cranked upproduction fivefold and saw her profit margin double.Then the problems started. The clasps on her life jackets were breaking, the shipments were late, her contact inChina was unresponsive. McCrocklin's patience finally expired when she opened a container of 3,000 leashes-alldefective. "The colors were completely reversed, and the logos were all upside down," she says. The factory wouldnot make good on the order, and McCrocklin didn't want her clients, retailers and online stores, to see the shoddywork. "I'm not sure if I'll ever be able to sell these," she says.A bad batch of leashes may seem trivial compared with the potentially deadly output of Chinese factories that hasparaded across the headlines-including 1.5 million toy trains coated with lead paint and 60 million containers oftoxic pet food. In July the Food and Drug Administration banned shrimp and four species of contaminated farmraisedfish from China.Suddenly, outsourcing to China-standard procedure for thousands of entrepreneurs-looks a lot more complicated.Now businesses must factor in the true cost of obtaining their products at the world-beating "China price." After therecalls, says Andrew Bartolini, an expert on global sourcing at Aberdeen Group, a research firm in Boston(aberdeen.com), "there's an understanding that low costs come with risks."Even big companies have trouble dealing with the fallout from defective products-unsellable goods, bad publicity,recalls, crippling litigation. Menu Foods, a $303-million-a-year company with more than 1,000 employees, spent$38 million recalling melamine-tainted pet food. Foreign Tire Sales, a 13-employee importer based in Union, N.J.,says it faces a $90 million pricetag for its recall-and possible bankruptcy. The company, which sold only 700,000tires last year, must replace 450,000 made by the Hangzhou Rubber Co. that may have dangerous defects.The cloud over Chinese goods does have a silver lining. Some Americans are shopping harder for goods that sayMADE IN THE U.S.A. And the nightmare scenario playing out at places such as FTS has alerted business ownersto be more aggressive in managing their Chinese connections. They must imitate the ways in which multinationalscontrol supply chains, says Bill Primosch, senior director of international-business policy at the NationalAssociation of Manufacturers (nam.org).Unlike big companies, most entrepreneurs can't afford to put employees on the ground to watch the assembly line.But a growing cottage industry of consultants specializes in managing overseas manufacturing contracts, saysBartolini. Many will help find a sourcing partner. Others can inspect goods at the factory and arrange shipping.Some handle everything, from selecting an industrial designer to overseeing quality control, even assuming liabilityfor a factory's output. Sourcing consultants earn their income by marking up products, but the client can still comeout ahead because these sophisticated players have connections to factories that other consultants and brokersdon't, says Bartolini.As with Chinese sourcing partners, the quality of middlemen varies. "There are a lot of cowboys-lone brokers withwebsites-some of whom have never even been to China," says Christopher Devereaux, managing director ofChina Savvy (chinasavvy.com), a sourcing company based in Hong Kong. To find reliable middlemen, Devereauxsays, check with other importers and trade associations in your industry.McCrocklin of Paws Aboard found her new consultant, One World Sourcing (oneworldsourcing.com), at a localtrade show. One World, based in Brooklyn Heights, Ohio, took over the manufacturing, quality control, andshipping of McCrocklin's dog gear last summer. Her defect-driven headaches faded, and profits have improved:"My costs dropped another 30% with the factory they hired," she says. "I get more done, at a more reasonableprice-and I don't receive late-night phone calls from China anymore."
Friday 20 June 2008
Thursday 19 June 2008
Open Door Sourcing
Open Door Sourcing 
Go Direct – Save Money
Service Driven that Differs from Agent Services
No agent fees ! No commission fees ! No hidden costs !
A Different Kind of Sourcing
Open Door Sourcing provides a unique service to overseas buyers interested in importing goods from China. Our company puts you in direct contact with manufacturers, saving you money. With an extensive network of contacts in China to source, we are able to offer an opportunity for you to expereince ‘seamless service’ while entering an economic market currently known for it’s exceptional growth.
Our dynamic British, Canadian and Chinese management team ensure that we fully understand the requirements of foreign companies looking to buy from China. Our unbeatable capabilities are ideal for sourcing either ‘existing’ products or for ‘custom-made’ goods designed by foreign companies.
Our aim is to provide our customers a sincere commitment to the highest quality of service saving time and money, offering convenience and peace of mind when dealing with companies in China.
We provide opportunities to help you strengthen relationships with your current customer base and attract new customers resulting in the growth of your corporate bottom line.
About Us
Four business partners connected personally and professionally since 2002.
Creative professionals with well defined interpersonal, analytical and leadership skills.
Collectively, 37 years of successful diversified experience in communication, management, sales and service.
Strong appreciation and awareness of cultural business practices in China through networking with established Chinese companies; owners/operators through to sales managers.
Relationships with local foreign business owners both professionally and socially.
Numerous contacts with foreign companies seeking business opportunities in China, resulting in a solid understanding of common difficulties in business culture and etiquette, finally overcoming obstacles creating a ‘win win’ situation for both parties.
No agent fees ! No commission fees ! No hidden costs !
A Different Kind of Sourcing
Open Door Sourcing provides a unique service to overseas buyers interested in importing goods from China. Our company puts you in direct contact with manufacturers, saving you money. With an extensive network of contacts in China to source, we are able to offer an opportunity for you to expereince ‘seamless service’ while entering an economic market currently known for it’s exceptional growth.
Our dynamic British, Canadian and Chinese management team ensure that we fully understand the requirements of foreign companies looking to buy from China. Our unbeatable capabilities are ideal for sourcing either ‘existing’ products or for ‘custom-made’ goods designed by foreign companies.
Our aim is to provide our customers a sincere commitment to the highest quality of service saving time and money, offering convenience and peace of mind when dealing with companies in China.
We provide opportunities to help you strengthen relationships with your current customer base and attract new customers resulting in the growth of your corporate bottom line.
About Us
Four business partners connected personally and professionally since 2002.
Creative professionals with well defined interpersonal, analytical and leadership skills.
Collectively, 37 years of successful diversified experience in communication, management, sales and service.
Strong appreciation and awareness of cultural business practices in China through networking with established Chinese companies; owners/operators through to sales managers.
Relationships with local foreign business owners both professionally and socially.
Numerous contacts with foreign companies seeking business opportunities in China, resulting in a solid understanding of common difficulties in business culture and etiquette, finally overcoming obstacles creating a ‘win win’ situation for both parties.
Sylvia 
Self employed in the language services and resident of Zhongshan, Guangdong, China since 2002.
5 year factory experience in a precision castings company; 3 years supervisory experience.
Successfully set-up and operated a Taxi company for 15 years.
Wendy
Resident of Zhongshan, Guangdong, China since 2002 teaching business English and western culture to companies interested in exporting overseas.
18 years with a Canadian chartered bank; 7 years as Bank Manager.
Proven sales and service skills with a track record of increasing profits and minimizing losses.
Exceptional negotiation skills.
Vera
From Guangdong, China speaks both the local language and Mandarin.
A degree in Foreign Trade English.
An excellent command of English both written and spoken.
Previous relevant experience includes business travel to England and Germany as the Sales Director and Assistant to the Director. Negotiating with buyers gaining a solid insight into the standards expected for both quality and service by British business clients.
Proven effective sourcing skills.
Tony
From Guangdong, China speaks Mandarin and numerous dialects of Cantonese.
A degree in Business Administration.
Highly knowledgeable and is accessible to the laws and practices of foreign trade.
Expertise in computer technology.
Self employed in the language services and resident of Zhongshan, Guangdong, China since 2002.
5 year factory experience in a precision castings company; 3 years supervisory experience.
Successfully set-up and operated a Taxi company for 15 years.
Wendy
Resident of Zhongshan, Guangdong, China since 2002 teaching business English and western culture to companies interested in exporting overseas.
18 years with a Canadian chartered bank; 7 years as Bank Manager.
Proven sales and service skills with a track record of increasing profits and minimizing losses.
Exceptional negotiation skills.
Vera
From Guangdong, China speaks both the local language and Mandarin.
A degree in Foreign Trade English.
An excellent command of English both written and spoken.
Previous relevant experience includes business travel to England and Germany as the Sales Director and Assistant to the Director. Negotiating with buyers gaining a solid insight into the standards expected for both quality and service by British business clients.
Proven effective sourcing skills.
Tony
From Guangdong, China speaks Mandarin and numerous dialects of Cantonese.
A degree in Business Administration.
Highly knowledgeable and is accessible to the laws and practices of foreign trade.
Expertise in computer technology.
Benefits to Overseas Customers
Save Money and Time
We guarantee saving customers money on their current products and obtain lower quotes for new products. When doing business with overseas buyers some Chinese manufacturers may charge more for their goods. We have the skills and ability to minimize any inconsistent pricing.
We offer a simple and cost effective ‘one time’ introductory payment taking no percentage of products bought thereafter. Agency fees often include additional and hidden charges, for example, unexpected invoices and commissions on initial and repeat orders which increases the ‘true value’ of the product.
We put you in direct contact with manufacturers, saving you unnecessary costs, such as agent fees, commissions and other hidden costs.
We do all the sourcing needed for the requested product and evaluate the potential suppliers.
Peace of Mind
We aim to find companies which have a good reputation for exporting overseas.
We aim to find the best manufacturer with the best quality and the best price for whatever is being sought after.
We ensure that there will be no language problems with initial contact or enquiry. A trusted translator will be provided for the initial contact to obtain quotes given by the supplier however, it will be responsibility of the supplier to provide a translator with ‘suitable’ English terminology needed for further correspondence.
We can refer you to a world wide quality control company located in Guangdong Province. For more info Quality Control
For an additional fee, we can offer further assistance in minimizing language problems when dealing directly with potential suppliers (Further negotiations to obtain a better price than our quote will be up to the purchasing company).
Save Money and Time
We guarantee saving customers money on their current products and obtain lower quotes for new products. When doing business with overseas buyers some Chinese manufacturers may charge more for their goods. We have the skills and ability to minimize any inconsistent pricing.
We offer a simple and cost effective ‘one time’ introductory payment taking no percentage of products bought thereafter. Agency fees often include additional and hidden charges, for example, unexpected invoices and commissions on initial and repeat orders which increases the ‘true value’ of the product.
We put you in direct contact with manufacturers, saving you unnecessary costs, such as agent fees, commissions and other hidden costs.
We do all the sourcing needed for the requested product and evaluate the potential suppliers.
Peace of Mind
We aim to find companies which have a good reputation for exporting overseas.
We aim to find the best manufacturer with the best quality and the best price for whatever is being sought after.
We ensure that there will be no language problems with initial contact or enquiry. A trusted translator will be provided for the initial contact to obtain quotes given by the supplier however, it will be responsibility of the supplier to provide a translator with ‘suitable’ English terminology needed for further correspondence.
We can refer you to a world wide quality control company located in Guangdong Province. For more info Quality Control
For an additional fee, we can offer further assistance in minimizing language problems when dealing directly with potential suppliers (Further negotiations to obtain a better price than our quote will be up to the purchasing company).
Location
Zhongshan is located in the heart of industrial China. It is in the ‘special economic zone’, an area chosen by the government to give full support to overseas investors and businesses.
Established companies in this area, involved in foreign trade, employ staff with a reasonable understanding of the English language.
A port city, Zhongshan is only a one hour thirty minute ferry ride from Hong Kong offering convenience for buyers visiting factories.
Zhongshan is only a two hour drive to Shenzhen, the major shipping port in Guangdong.
Zhongshan is located in the heart of industrial China. It is in the ‘special economic zone’, an area chosen by the government to give full support to overseas investors and businesses.
Established companies in this area, involved in foreign trade, employ staff with a reasonable understanding of the English language.
A port city, Zhongshan is only a one hour thirty minute ferry ride from Hong Kong offering convenience for buyers visiting factories.
Zhongshan is only a two hour drive to Shenzhen, the major shipping port in Guangdong.
Pricing
Save on Unnecessary Cost
No agent fees No commission No hidden cost
We offer a simple and cost effective ‘one time’ introductory payment based on the following:
Number of product enquiries
Enquiry for an existing or custom made product
Location of manufacturer For more info Products
Open Door Sourcing is an introductory service based on a one time fee. No further payments are required to us for any repeat orders you place directly with companies that we have introduced you to.
Cost of additional services depends on your requirements. For more info Additional Services.
Additional Services
For business people wishing to come to Zhongshan we can also provide a visiting service which would include airport or Hong Kong Hotel pick-up, hotel reservations, transport and personal introduction to the company etc…
We can offer further assistance in minimizing language problems when dealing directly with potential suppliers (Further negotiations to obtain a better price than our quote will be up to the purchasing company).
We will be pleased to consider other services. Please enquire.
Cost of additional services depends on your requirements.
For business people wishing to come to Zhongshan we can also provide a visiting service which would include airport or Hong Kong Hotel pick-up, hotel reservations, transport and personal introduction to the company etc…
We can offer further assistance in minimizing language problems when dealing directly with potential suppliers (Further negotiations to obtain a better price than our quote will be up to the purchasing company).
We will be pleased to consider other services. Please enquire.
Cost of additional services depends on your requirements.
Target Markets
Open Door Sourcing aims to provide services for small to mid-size foreign companies who are seeking to build business relationships with Chinese companies but lack communication skills or are not interested in setting up a branch in China.
We also welcome the opportunity to provide our services to companies who are currently importing from China, but are not 100% satisfied with their existing product, service or price.
We also welcome the opportunity to provide our services to companies who are currently importing from China, but are not 100% satisfied with their existing product, service or price.
Products
Open Door Sourcing welcomes all enquiries. We have the resources to locate companies to produce existing or custom made products. China has become an export powerhouse producing every product imaginable. With the vast array of products on our doorstep we will not limit ourselves to any particular product.
We aim to locate your product within our local area so that we can personally visit and inspect the manufacturer to ensure you receive the best quality and price. Some areas of China specialize in particular products which are unattainable in our local area. Should you require products such as fireworks we will extend our search to the recommended area of China.
Quality Control
Trust, but verify is the rule for China quality control
Trust that the supplier will deliver the quality you've defined in the purchase order, but verify it as well.
There are several ways of verifying that your quality specifications are being met by your China suppliers. Depending on the size of your company and your particular circumstances, we recommend that you consider the following options:
Rely on the suppliers quality control
Have someone in your company do the quality control
Hire a third-party inspection agency
Meeting your inspection needs
Factory audit services, inspections, testing, quality assurance and certification help businesses to:
Reduce risk associated with poor quality, loading, storage, transportation and non-compliance with regulatory requirements
Ensure that contractual obligations are met: specifications, packaging, marking and delivery
Identify problems before products are shipped or distributed
We can refer you to a world wide quality control company located in Guangdong Province to ensure that your quality controls are met.
Trust, but verify is the rule for China quality control
Trust that the supplier will deliver the quality you've defined in the purchase order, but verify it as well.
There are several ways of verifying that your quality specifications are being met by your China suppliers. Depending on the size of your company and your particular circumstances, we recommend that you consider the following options:
Rely on the suppliers quality control
Have someone in your company do the quality control
Hire a third-party inspection agency
Meeting your inspection needs
Factory audit services, inspections, testing, quality assurance and certification help businesses to:
Reduce risk associated with poor quality, loading, storage, transportation and non-compliance with regulatory requirements
Ensure that contractual obligations are met: specifications, packaging, marking and delivery
Identify problems before products are shipped or distributed
We can refer you to a world wide quality control company located in Guangdong Province to ensure that your quality controls are met.
Contact Us
Subscribe to:
Posts (Atom)
