Step 1: How to find a manufacturer in China
The internet: The internet is the default option for many people seeking to source products from China. More than a general Google, Bing or Yahoo search, hitting B2B platforms may be more helpful. These are online sourcing platforms such as Alibaba, Global Sources and Made in China, which connect buyers to Chinese manufacturers. Finding a supplier on these sites is as easy as typing in your requirements in the search bar. It helps if you are specific here. For instance, instead of “brass locks”, you could search specifically for “brass die cast drawer and cabinet locks”.
Since there are thousands of suppliers in China, you could filter them depending on reviews, and the platform’s rating process before shortlisting them.
Alibaba, for instance, gives its suppliers “gold” ratings, which purchasers see as a sign of trustworthiness. Similarly, Global Sources has a “verified supplier” category.
Look for manufacturers, not resellers or traders.
While these resources are useful to draw up a shortlist, it is important to remember that many businesses thrown up by search engines and sourcing platforms may be resellers, not manufacturers. While sourcing from such middlemen may be ok if you are buying products to retail such as beauty products, toys, clothes, or cheap electronics, when you require products that must meet specific technical requirements such as die casting, metal stamping and plastic molding manufacturing it is best to identify a manufacturer and source from them directly. Most importantly, this also reduces costs. You can weed out resellers while verifying suppliers (more on that later).
Sourcing agents: Businesses that are relatively new to outsourcing could team up with sourcing agents who will help them identify suppliers and guide them through the process step by step.
Sourcing Allies, for instance, has been helping companies in the US and Western Europe manufacture and source goods from China, India and Eastern Europe for over a decade, and has a proven sourcing process.
Our multicultural team consisting of British, American and Swedish expats living in China for years takes care of a lot of the research and due diligence that buyers must do while looking for a manufacturer in China.
Our team guides purchasers through the process of getting quotes from a supplier, reviewing the quotes, evaluating factories in China, resolving any issues that crop up, drawing up payment terms, managing the complexities of communicating your manufacturing requirements, quality control inspections, shipping and transportation, administration and ensure that the goods arrive at your desired location as scheduled.
China is huge and should actually be considered as many different regions rather than a single large one. A good sourcing agent will be able to identify low-cost regions that are the best fit for you. For instance, you will probably be able to find manufacturers that fit your needs in several Chinese provinces, but you will be more likely to find more consumer electronics manufacturers in Guangdong province while die casting and plastic molding manufacturers are found in great numbers in Zhejiang province.
You will need to put in work too, of course, but relying on experience within the sourcing field will help you avoid common mistakes and ensure that your outsourcing project is successful from the start. Once your sourcing partner knows your expectations and needs, the process to outsource your next product or component will be pretty straightforward.
Step 2: Make a shortlist of suppliers/manufacturers
Your initial searches will throw up a number of potential suppliers and you will need to cut this list down further. You can do this by contacting each of them, telling them your requirements such as:
- Details of the components you expect to manufacture – specify whether these components require die casting, metal stamping or plastic injection molding.
- Your minimum order quantity or MOQ.
- Whether you need a prototype to be developed, need the manufacturer to help develop your design further or have a mould already. (Experience tells us that factory owners in China are not really keen on “development” projects as these projects consume a lot of time and cost a lot of money with no clear end in sight. Usually endless modifications are needed to tooling and this generally results in delays and additional expense.)
- The material you expect to be used for the manufacture of your component.
- The price per item.
You could also ask them for more information about themselves, which will help you with the verification process (more on that later). This could be details such as:
- Whether they specialise in manufacturing the component you require.
- How long they have been in business.
- Whether they already export to the US or other western countries.
- Their minimum order quantity or MOQ.
- Their business licences.
- Any certifications that they have related to their production capability.
Why do manufacturing costs increase with smaller order quantities?
Here’s a pro tip: When you contact suppliers in order to draw up a shortlist, do create a separate email to send out these enquiries as your inbox is likely to be be clogged by the responses many months after you first send them out.
You can shortlist potential manufacturers based on the responses you get. Assess them on a number of points. For instance, pick manufacturers who focus on making the kind of component you are looking for instead of a cornucopia of components, as specialised expertise is always valuable. You could also give preference to manufacturers in China who already supply to clients abroad because they would be acquainted with western quality expectations, nitty-gritty of customs requirements and the complicated logistics of international shipping.
Sourcing Allies is a team of expert China sourcing agents that has helped western customers manufacture and source products from low-cost regions since 2006.
For more on China sourcing visit our website or write to us at info@sourcingallies.com.
