Maple Sourcing Ltd.
Maple Sourcing Ltd.
We Make Your Sourcing Easy!
Need help? sales@maplesourcing.com
English
Maple Sourcing Ltd.
Maple Sourcing Ltd.

Key Advantages of Global Procurement from China

2023-12-22
3133 Views

global sourcing from China

Across the globe, the business environment is becoming highly competitive. The emergence of E-commerce and internet penetration revolutionized the way we do business, global procurement has become a“must” choice for many businesses.

For global procurement, major companies prefer Asian and Latin American countries. Most of these countries are investing heavily in infrastructure creation. This is facilitating the emergence of numerous manufacturing hubs focused on specific sectors. Due to this, China direct sourcing is becoming the hot spots of global procurement.

Among these countries, China is an early mover and still a leader in global procurement. Many global companies have either direct manufacturing facilities or sourcing partners in China. Labor is cheap bringing the total operational cost below the global average. The government provides tax incentives for promoting manufacturing. It also has vast maritime logistics capabilities with multiple shipping ports.The gradual implementation of scientific supplier reliability audit in China is also an important basis for selection.

Due to all these factors, there are numerous advantages of global procurement from China.

Trends in product procurement

Global procurement - Nowadays, companies are looking beyond their domestic markets for product procurement. This is mainly due to cost considerations. The improved logistics are making it easy for sourcing from other countries. Most companies buy products from China because it is one of the low-cost sourcing destinations. Global procurement is not strictly limited to cheap production, but it aims to tap into new talents or resources that are domestically unavailable. 

Green logistics - Green logistics is not limited to transportation or delivery methods. It includes warehousing, packaging, material handling, transport terminal, distribution, and disposal. The green logistic process minimizes environmental damage while maintaining efficiency. Eco-friendly customers can buy products from China because the country’s initiative towards green logistic technology is better than other foreign countries. Sustainability is taking the center stage in business growth. Companies are taking serious measures to reduce their carbon footprint. The same trend is visible in logistics during sourcing.

Global quality standards - Ordering products from China is possible, but quality is a  concern. Quality assurance is a major step in sourcing. Comparing to domestic sourcing, quality control for global procurement is much more difficult.   

If you plan to purchase bulk goods from China, then we suggest you approach a right sourcing agency such as the Shenzhen sourcing agents are famous in China. Make sure they offer complete transparency, quality, and pricing. 

1. Product sourcing - The initial step is to understand your business objectives and quality needs. The sourcing agent obtains quotes from the best manufacturers,and they have their own methods on how to negotiate lower MOQ. Then they determine an appropriate one based on lead-time, cost, and quality. They send samples for review after accepting the quotation. After samples are approved, a trial run is arranged, and after you gain confidence, mass production is started.

2. Manufacturing control – It is crucial that proper follow-ups are handled in the manufacturing control procedure. It saves time and probable issues that can pop up later. The merchandizing team should have good experience to make sure the manufacturing process works on proven practices and industry know-how.

3. Quality inspection - Quality inspection/ quality control in China include pre-production inspection, on-line inspection, and pre-shipment inspection as well as pre container loading check. The QC professionals monitor your manufacturers to ensure compliance with safety, function, and visual standards. 

4. Order monitoring – The full details for an order must be properly monitored, project management should adhere to good practices, which ensures that information regarding possible snags or hitches are delivered to the manufacturing team promptly. This reduces hitches in the production and boosts the overall process. 

Benefits of global procurement from China

China is proven to be a successful global procurement destination for many organizations. Various advantages of global procurement are: 

Low-cost production

Your aim is growth and expansion, so it becomes essential to partner with Chinese manufacturers. A successful organization can outsource its labor-intensive processes to developing nations offering cheap human labor. This allows lower production costs and ultimately the savings can be shared with potential customers.  

High capacity

If businesses approach China, they can use the infrastructure and population of labors to produce goods in large volumes at a speedy rate. With a higher product volume, the cost per unit is lessened. 

Multiple choices

In China, global manufacturing hubs are designed as clusters. You are likely to get multiple suppliers and factories in China. This widens your choice and helps in procuring the best quality products at competitive rates.

Product diversification

Business growth is highly dependent on your product offerings. Sometimes, the in-house manufacturing capabilities of your firm are not enough for product diversification. Buying bulk items from China can facilitate diversification and lead to business expansion.

Stages of global procurement from China

Investigation & research -  Identify operational activities, market needs and assess your competitors. It helps to understand business goals and the target market to position your brand in the global market. A solid procurement plan helps to detect sourcing scope.

Evaluate market & supplier - Create parameters for hiring reliable suppliers. The sourcing agent will help in determining the suppliers’ choosing parameters and prepare a list. Requests for information are sent to the listed suppliers.

Choose a suitable supplier - Based on the response from suppliers, the sourcing expert will prepare a final supplier list as many will not respond to the request for information. The chosen suppliers will offer an estimate or quote. After thorough research and comparison, the suitable supplier is informed about the deadline of product delivery.

Implement sourcing process - The sourcing agency will create a strategy and work schedule. It is a stage where resources, as well as shared supply & logistic arrangements, are made. The sourcing agency even monitors regular performance and sends reports to your company.

Monitor performance - Suppliers' performance is evaluated based on resources and procedures employed. The report helps to understand communication extent with suppliers. In case of collaboration issues, efforts can be taken to reduce it. Performance monitoring helps to maintain an effective global procurement process. 

Things to consider while sourcing from China

Easy accessibility - Ensure that traveling to China is easy, whenever needed. After entering a partnership with a sourcing company in another nation, you will often need to pay visits.

Supplier’s flexibility – It’s important that your Chinese suppliers respond to your demand changes, and are flexible to your order scale, lead time and requirements. They must have the ability to stop flawed products reaching your customers, and keep good business relationship with you.

Clear communication - You need to understand the country’s language and culture as you plan to establish long-term business relations. If you cannot speak Chinese, it’s better to hire someone on the ground to help you.

Reasons you need a sourcing agency

The key reason to partner with a sourcing agency is that it is hard to follow up with Chinese suppliers and you cannot monitor the product quality you ordered. Unlike face-to-face, communication is also unclear and inefficient between you and the supplier. 

A Chinese sourcing company representing you means they belong to your supplier’s country and are aware of how to navigate better than you.

They can spot scams instantly. As you are in a different nation, you are unaware of the supplier’s integrity. Sourcing experts are aware of such scam suppliers and keep you alerted. 

They can pay your suppliers only after you are 100% sure about product quality. The sourcing team performs an onsite in-person quality check, so you are 100% certain about product quality.

They can discover new suppliers, which offer quality level products at fair rates. They do all the legworks. They can also help the suppliers develop new styles of products.

They assist in quality control, market research, pre-shipment inspection, supplier network development, and customs clearance. Therefore, investing in sourcing agencies reduces the overall operating cost and increases revenue. 

A professional sourcing company ensures that you gain access to trustworthy suppliers and attain the right merchandise at possibly low cost. They help you minimize costs, maximize profits, and save time. 

Conclusion

Global procurement from China offers various advantages, however, monitoring the whole order process and assure product quality is very difficult. By outsourcing your procurement to the best sourcing partner, you can enjoy consistent quality and supply at a low cost. Simultaneously, you can avoid unreliable supply, quality problems, cultural differences, language barriers, and currency handling. With their help, your orders are mass-produced as per the standards.

All Articles
Why Is Quality Control in Manufacturing Important?
How to Arrange Private Label Production in China?
Trend of Hot Selling Promotional Gifts in 2025
Introduction to Premium Quality Goods from China
Importance of Pre Shipment Inspection in China
Basic Procurement and Outsourcing Knowledges
How to Deal with Global Sourcing Agents?
Ways to Improve Quality Management in Production
How to Get China to Manufacture Your Products?
Knowledges about International Container Shipping
Tips to Buy Products in Bulk for Resale
How to Not Get Scammed on Alibaba?
What Does OEM Mean to Global Consumer Brands?
What Is Global Procurement and How It Works?
Practice for Managing Risks in Supply Chain
Product Development to Make Your Ideas Real
Experience of Buying Raw Materials Abroad
Importance of Chinese Company Verification
Tips about Finding China Quality Control Service
Proven Product Sourcing Methods and How to Start?
How to Predict Market Demand for Online Business?
Introduction to Free Trade Zones in China
What Is Supplier Consolidation and How It works?
How to Improve Customer Service Quality?
The Most Profitable Products to Import from China to Europe
How to Find Wholesale Products to Sell on Amazon?
Practical ways to custom make sunglasses in China
How to verify a sourcing agent in Guangzhou?
How do I handle packaging sourcing from China?
Recommendations for high quality outdoor products
What Should You Know about Mould Making in China?
What is the best shipping method from China to USA?
How to order from 1688 and assure quality?
Brief of Factory Audit Process and Checklist
Ensure your business success with quality control in China
How to find a manufacturer to make a prototype?
Important Port Cities in China and North America
How to select payment terms and assure payment security?
Major Apple manufacturers in China: 2025 update
How to buy products directly from China?
What does MOQ mean in business and manufacturing?
A tour to the best electronic market in Shenzhen
Advice for sourcing promotional products from China
What are the pros and cons of global sourcing?
Benefits of using sourcing companies in China
How to buy in bulk from China and manage bulk orders?
What are the major company compliance standards?
Professional introduction to product safety regulations
Best selling electronic gadgets made in China
Best practice about quality sourcing control
Read More
Our Features
Custom Products
Turn concept to reality
Quick Response
Within 24 hours
Detail Oriented
Strive for perfection
Assured Quality
100% Guarantee