Why Source from China?

If you are considering moving your manufacturing to a foreign country, you have no doubt heard numerous horror stories about everything that can go wrong in the process. Even a brief glance at e-commerce websites like Alibaba.com will reveal chat rooms full of people who have been cheated, and companies trying to figure out if a potential supplier is legitimate. The stories are enough to make even a seasoned CEO cringe - stories about wiring a large sum of money to a factory only to discover that the company doesn’t exist, the goods were never shipped (or even produced), intellectual property has been stolen, or that the US Customs Service has impounded truckloads full of goods and is threatening to return them – at your expense, of course.

Any company considering foreign sourcing undoubtedly has concerns about the process. It’s natural for any business to worry about quality control, products being produced to appropriate technical standards, items being held up upon entry to the United States, and the like. Beginners might wonder about whether goods will actually be shipped after posting an international payment, and even the most sophisticated business will have concerns about currency fluctuations and unpredictability in the supply chain.

Despite such concerns, thousands of companies have benefitted from outsourcing parts of their manufacturing. The method to success is basic: working with a reliable partner to help you realize the benefits and reduce risks. This adds safety and predictability to your procurement needs.

Four Reasons to Source in China

1.      Increase your Profits

China’s relatively inexpensive, yet well educated workforce has made it extremely attractive for the sourcing of manufactured goods for U.S. businesses. The cost of using a Chinese workforce for your manufacturing needs may be 10 times less than other alternatives. China also has lower import duties than other countries. Sourcing your manufacturing in China will save your company money, allowing you to invest more in other areas of your business. By putting production and logistical processes in the hands of others, you will be able to spend more time and money planning how to market and sell your goods.

2.      World-class, Consistent Quality

China’s factories are highly sophisticated and capable of producing complicated and intricate designs. Shorter production runs are available, which means your product receives personalized attention. China has superior logistics, technology and infrastructure. China consistently has greater factory productivity than competing countries. Sourcing your products with a China manufacturer that specializes in your particular process means you can increase the quality of your goods, whether you are manufacturing medical products or industrial hardware. Because you are working with a sourcing partner who has operational expertise in this area, they will ensure that you receive the best quality by providing products for your review and approval throughout the process.

3.      On Time Delivery and Continuity of Supply

China has the experience and education in delivering products that adhere to the rigorous standards that are required by both western legislation and consumer demands. China has allocated more than 10 percent of its Gross Domestic Product toward infrastructure development which will enhance its future logistical abilities in bringing their products to the world’s consumers.

4.  Abundant indigenous raw materials and a well developed industrial base

Most raw materials you will need are available in China as native products. China developed a highly self-sufficient industry. In the 1950s and 1960s, many large industrial facilities were built. From the perspective of a western observer there seems to be an amazing variety of factories that make the same kinds of industrial goods found in the U.S.