SourceChina Manufacturer to India: How to collaborate and how to win. This is a scenario that many of the manufacturing companies have experienced. Working with a supplier from China can be an opportunity or a challenge. On one hand, you have a potential powerhouse in the emerging markets; on the other hand, you have to make sure that your terms of business reflect this potential. It takes a well thought out approach to understand how to collaborate and win in this context.
The first part of this discussion is about the sourcing of resources. In all likelihood, you will not be able to source raw materials in China directly. Rather, you will need to make use of a middleman such as a China Manufacturer. This helps the Chinese manufacturers save resources and avoids the cost of transportation and storage.
The second stage in this collaboration and negotiation process is on product specification. In case of a Chinese manufacturer, you may end up with a product specification that suits your requirements perfectly. However, the benefit that you will enjoy is likely to be limited. For instance, a Chinese manufacturers' product specification may include assembling the item at the specified site, using standard machining techniques and using standard and indigenous computer software. On the other China Manufacturer , you may also end up with a product specification that uses off-the-shelf or generic parts and supplies.
This means that both parties can benefit from the product specifications provided. However, you would only get a fair deal if you approach the manufacturer or supplier through the right channels. The wrong channel can easily spoil this opportunity for you - with a wrong supplier or a wrong Chinese manufacturer.
The third and most important stage in this negotiation process is implementation. You can find help from various channels such as the Chinese Manufacturers Association, which can provide you with the best possible negotiating tool. Another good channel is a network of independent factories who can give you access to factories and suppliers. If you are lucky, then these factories can even give you a free trial run of a certain product or a complete model. Thus, by taking advantage of every possible opportunity, you can easily enter the Chinese market as a brand.
You can start off with a trial source of one or two types of product. This could be in the form of raw materials or a finished product that you can introduce to the market. You should take full advantage of every opportunity that comes your way. In this context, it is also important to mention that the terms used in the product sourcing or manufacturing process have a great impact on the final cost of your Chinese manufactured goods.
Most importantly, you should ensure that the contract you sign up for with a Chinese manufacturer or supplier is easy to understand. It is best to stick with simplified Chinese contract forms. This will make the whole thing easier for your clients and also help the Chinese manufacturer in giving you the best deal. You will find that most of your clients use the simplified contracts to enable them to easily comprehend the entire contractual relationship between you and the Chinese manufacturer. Most Chinese contract forms are in simple terms so that you can easily understand them and process them accordingly.
Product labelling requirements are another aspect that you should always consider when sourcing out a Chinese manufacturer. First and foremost, you should make sure that the manufacturer you choose is capable of providing you with high quality and durable products. To this effect, you should get references from other clients before you make things really interesting for yourself. With the right information about your product specs and factory location at your fingertips, you will definitely find that things will be very easy for you to do in the future.