How to evaluate suppliers from China

2021.5.25

Identify your ideal supplier. The Buyer shall first define its “Ideal Supplier”. This is unique to each buyer and depends on many factors, including price, quality and delivery time.

 

Define your location. The location of the plant should also play a role in the supplier assessment. While manufacturing costs are lower in factories in China’s northern and western provinces, quality is generally lower. Those on the coast and in the south have higher production costs but are usually of better quality. Also note that the further inland you go, the more expensive the logistics will be.

 

Do your homework. The best way is to visit the factory in person.

 

1.  You must visit the supplier in person or ask for payment before you remit the money.

 

2. Please purchase information online and do background research on the supplier before remitting.

 

3. Online procurement sites have “quality services”.

 

4. Confirm that the vendor can provide the documentation you require, or not cooperate with them.

     All large quality control/testing companies can do professional testing for you.

 

5. Web sites, phone calls, faxes, and email are not a substitute for on-site competency audits (or project management or quality control).

 

6. Trade shows, while helpful, should not be your primary supplier assessment tool.

    Representatives may not be with suppliers after the show.

    Decision makers are usually not at the show

 

Narrow your selection: Before you begin contact, narrow your list of potential suppliers based on non-price attributes. This is basically sending an email or fax, or making a phone call to ask for product-specific information, including price, minimum order size, and lead time. Here are some points that are often overlooked when asking for a quote.

 

 

What to check when auditing the factory

 

Does the company comply with local labor laws? Does the factory comply with ISO 9001 and SA8000 standards?

Facilities: manufacturing, testing, packaging and loading areas

Process: lead time estimation, record control and procurement systems

Administration: credential and workflow systems

Social responsibility: child labor, working hours and wages

 

Does the company have all the documents requested or requested by your attorney?

Export licence

Test certificate

The industry standard

MNC certification (if applicable)

Visit the factory in person.

Spend more time on the production site.

Bring your own interpreter and visit as many sites as you can.

What is the current status?

capacity

fiscal

clerk

To find out:

When is the factory busiest and does it conflict with your schedule?

Their production is more or less subcontracted.

How they control IP and nonconforming products.

Check the efficiency of workflow systems and see if they are in practice.

Test your supplier’s knowledge of your product requirements. Require samples to be sent to you according to your exact specifications (payment if necessary).