Today, over 80% of all worldwide products are manufactured in China or somewhere in Asia. For most organizations, it would make perfect sense to look into purchasing their products from the giant production country, China. However, purchasing from China or anywhere in Asia can be challenging.
The typical bad stories
Some quotes that you might have heard before: ‘’When my purchased goods arrived the products didn’t have the right quality,” “Since my down payment I never heard from my product factory again’’ or ‘’Communicating my requirements takes me so much effort and time that it drains my willingness to work with them.’’ The list of those typical stories is endless, and it doesn’t motivate organizations to purchase in Asia. Nevertheless, there are far more success stories. The chance is high that when you look at any of your recently bought products or packaging, it will say: ‘’Made in China.’’
You did your market research; you know there is demand, and from a cost standpoint, it makes sense to produce in Asia. Then it starts with converting a defined product drawing or idea into a sample and ultimately into mass production. This whole process could be time consuming, especially when you have a highly detailed product that requires high standards. You want to do it right and you’re aiming to deliver high-quality products on time. Therefore, you will need to monitor the sourcing process on a daily basis. This involves searching for manufactures, getting quotes, ordering samples, transferring money, and checking production. At the end, you might need to go to your manufacturer to check on your order to assure they produced the right quality.
The end-to-end solution
For some organizations, it makes sense to carry out the sourcing process on their own. It is also an option to outsource the sourcing process so that your organization can focus on customer acquisition or designing your next product. This results in a higher purchasing price for your products, but that money will be well invested because you concentrate on growing your organization.
Tackling your common sourcing problems such as communication, finding manufactures or checking order quality can be solved by a sourcing agent. The agent will take over your sourcing process and will guide your organization through buying in China. Some key conditions are that the agent is based in China, speaks the language, has a great network of manufacturers, and of course knows how to handle the complete process of sourcing in Asia. Scale Roads offers all of these conditions and is happy to help your organization in Asia.
Contact us today and find out how we can scale up your business.