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China Source

By: DYLAN Sun

China source outsourcing, at its first glimpse, may not seem to be that attractive because of some false beliefs that have risen about the reliability of China's supply sources. To many people, products made in China means textiles, footwear and toys of doubtful quality. But the fact is that China source companies are now involved in manufacturing machinery and electronics devices that are of excellent quality and mainly exported.

Labor cost in China is comparatively lesser than other places, but the workers over there are well educated due to the efforts made by the government. Chinese government is very protectionist about the business deals in the domestic market; but in also lays emphasis on the need for the improvement of export business.

Once you choose the company for China source outsourcing, the next step is to finalize the terms and conditions of the business. The terms and conditions specify how the business will be executed later.

After looking for the product it is very important to check out for the quality of the product because a bad quality product will surely lead to the failure of the sourced project. Make the China source outsourcing company clear about the quality you want for your product. The quality issues include finishing of the surface, tolerance abilities, quality standards and specifications for the required product. These issues must be clearly stated in the contract documents.

China source companies mostly follow Statistical Process Control rather than the ISO 9000 quality standards. On-site monitoring is the best method to ensure that the quality standards are properly followed during the manufacturing of the product. On-site monitoring is very essential because of the negative attitude of the local people. Chinese people tend to deny that they are wrong. So it is very important that a third party is involved in the deal that can perform on-site inspection.

At the end it is only the eventual buyer who has to pay for everything from shipping, insurance to brokerage and duty; the only difference being the person who lay out that money at different stages. Before setting the shipping terms make sure they are adequate and cost saving for both the parties.

Beside the products, it is also important to check out for the quality standards that are followed for the product. Before finalizing the terms and conditions, make clear to the company what quality standards you are expecting for your product. If third party is involved in the deal, then it is best to have on-site inspection to ensure that the quality standards are being met by the China source company.



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