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1: How
much savings can we expect by sourcing from China?
Generally,
you can expect 20-40% savings by sourcing from China. It
varies by the types of the products: the more labor
intensive jobs, the more savings. Because of the
manpower costs in China is lower. Sourcing from China
will help to save your purchasing costs and improve your
market competitiveness significantly.
2:
Who are your current customers for reference?
Our
current customers include world class companies, some of
them are:
Visteon,
Whirlpool, CV Unlimit, AAG, AUTO7, IACO, DIXIE and ARCE, etc.
3:
What is the general process of sourcing in China? Is it
an easy job?
Sourcing
from China is quite easy with us, you only need to
prepare to send us the inquiry, we will handle the rest.
The
general process is:
a.
Inquiry, Quotation, Price Confirmation: 15 days
b.
Building mould and tooling, initial samples approval:
60-70 days
c.
Mass Production and delivery for each order: 30-45 days
First
you may need to send us inquiries with samples and
drawings, and annual usage quantity, we will quote you
within 10 days the price and feasibility study for your
products.
If
the price is acceptable for you, we will build the
tooling and mould and do quality checking jobs for you.
Initial samples will be offered to you around 45 days.
After that, there may be some feedbacks from you and
some correction, this will take another 15-20 days. Then
we are ready for mass production for your order.
For
each order delivery, generally it will take 30 ?5days
for production, then we can ship out the products for
you.
4:
How is your quality level and supply capability?
We
have around hundreds of manufacturing partners, 90% of
them are ISO9000 certified and some are TS16949, or
QS9000 certified. Their sizes are generally between
100-800 workers.
Each
plant are carefully evaluated and selected by
manufacturing capability, quality system, price, service
attitude, and willingness to do export business, and
they are among the best professional plants in their
line of business.
For
any project coming to us, we will also have our own
quality control engineers to do quality inspection,
process control and delivery management jobs for our
customers.
5: I
have heard a lot stories about failure in sourcing in
China, what is the reason? Is it risky?
The
key factors for the success of souring in China include:
a.
precise technical translation,
b.
careful selection of capable manufacturing plants,
c.
deep knowledge and experiences about Chinese local
industry, technology level and price level,
d.
local on time, at sight technical support and quality
control jobs,
e.
shipping and foreign currency transaction service.
We
have combined all these factors within our company.
To
ensure your sourcing jobs successful, you need a good
partner and support system like us.
Without
this system, randomly choosing manufacturing plants by
searching the internet is generally risky, some failure
story may have the following reasons:
Some times the plant in reality may not be same it is on
internet;
The American technical drawings are quite different from
Chinese drawings. Very few plant engineering team have
professional English translators. For an English
drawing, if only 5-8% of the specifications are
mistranslated or not well understood at the beginning,
in mass production situation will be out of control.
Without local quality control jobs at sight,
customer can only see products when they arrive
warehouse, 30-40 days after shipment. For a component
with 20-30 spec requirements, it is of high possibility
that some thing may go wrong when customers finally
receive it.
Without local quality control audit, when something is
found to be wrong by customers 1 month after shipment,
it is generally not an easy job for the Chinese speaking
plant engineers to understand correctly and effect good
correction jobs. And for corrections based on feedback
from overseas customers after 1-2 month, it is always
very time and money costly.
6:
What kinds of items are suitable for sourcing in China?
The
most suitable components are:
Higher volume parts: develop an new product from far
away offshore country will involve a lot of jobs and
costs: building new tooling, quality control, new
process control, customer feedbacks, and confirmation,
etc. If the purchasing quantity is big and not so many
items, it is economic that with limited efforts,
customer will save significant purchasing costs.
Labor intensive parts: when labor such as machining
,welding and assembly are the major costs portion of a
component, it is a suitable part for sourcing from
China, as the labor costs are low in China, and in this
way, it will save good purchasing costs for customers.
7:
How to prepare a good inquiry for you? How long is your
quotation time?
It is
very helpful for customer to send the inquiries with
drawings, expected purchasing quantity, and samples.
Samples are always very helpful for us to give a
confirmed price and figure out correct manufacturing
process.
Generally,
it will take 7-10 days for us to send out a quotation
and feasibility study report.
8:
How long can you make a sample for approval?
We
can generally finish building the new mould and tooling
and submit initial samples within around 45-60 days,
with all the material certificates and size and
tolerance checking reports.
9:
What is your payment term for tooling costs? Is it a
risk for us?
For
the tooling costs, customer only need to pay 40% in
advance, we will bear the rest of the costs from our
side. After sample approval, customer pay the rest 60%.
In this way, we will share the risks in development of a
product together with customers. If the project turns
out failure due to some reasons, we will return the 40%
down payment to customers.
10:
How long will you be prepared for production?
When
the initial samples are finished and confirmed, mass
production is ready. Generally, it will take 45-60 to be
ready for mass production from price confirmation.
11:
What is the production time for each delivery?
30-45
days.
12:
How do you do your quality control jobs?
When any new drawings coming to us, we will have
professionally trained translator to do all the
technical translations, turn all the specifications
detailed into Chinese;
Based on the requirements of the products, we will
select the most suitable manufacturing plants to work on
parts;
Before building tooling and mould, our quality
engineering team will study the drawings carefully,
establish process control and final quality standards,
and clarify the potential problems in manufacturing
process with the manufacturing plants.
When the mold and tooling are finished, our engineering
team will check the material, make full size checking of
the samples, audit the manufacturing process, and issue
correction report to plant engineers to make
corrections.
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When samples are corrected, we arrange it to be sent
together with full checking report to customers. And if
there is some feedbacks, we will ensure that further
corrections are made in time and plants are ready for
mass production.
For mass production, our engineering team will check on
sight for each delivery of goods, and issue quality
report. For high volume project, we will send a
professional quality engineer full time to work on sight
to do process control jobs to ensure that the whole
manufacturing process are smooth for mass production.
13:
How do you choose your manufacturing plants?
We
choose the most suitable plants by: quality, price,
previous experiences in similar products, cooperative
and honest business behavior. In this way, we will
arrange the most suitable plant to work for our
customers.
14:
How about the shipping time from China to here?
Generally,
16 days to west coast of US, 30 days to US east coast,
18 days to major European seaport. Another 5 days for
import custom clearance, 5 days for inland
transportation.
Totally,
it will take 30-45 days for goods arrive customers'
warehouse.
15:
What is the easiest way for handling the shipment? Can
you ship to our door?
We
can ship directly to customers' warehouse, and help to
handle all the sea and air shipment, import duty and
documentations, and inland transportation jobs. So,
customers can wait for goods arrive warehouse easily.
16:
We have our own shipping agency, can you ship to them?
How is the costs difference between you and them?
We
can also cooperate with the shipping agency that
customer familiar with, send goods to major Chinese
seaport or major US or European seaport, let them do the
rest of shipping jobs.
17:
What are the import duties?
Generally,
it is around 3%. In some cases, it is 0%.
18:
Is it a complicated job to clear the customs, and all
the paper works for import? How to handle with that?
We
can help customers to do all the shipping, custom
clearance, and inland transportation jobs to send goods
directly to customers warehouse. This will make the
souring jobs very easy for customers.
19:
How is your payment term?
We
require 20% advanced deposit, and 80-100% payment
against delivery for new customers.
For
trusted long term customers, we can consider payment at
receipt of goods.
20:
How about if the quality of your delivered products do
not meet our requirements? How will you make
compensations?
We
will be fully responsible for the quality problems. If
customer receive unqualified products, we will ship the
components at our costs and compensate by full
replacement of products.
21:
How would you offer your service to us?
In
US, we have local representative for customers to
communicate with, and we have fluent English speaking
customer service people to translate all your
requirements into Chinese for engineering team to
execute your requirements.
For
shipment, to make it easier for you, we can ship
directly to your warehouse.
22:
What is your value in the supply chain?
Our
values are:
Technical translation;
Choosing the most suitable plants from China to work for
you;
Bargaining the best prices for you;
Quality control jobs: process control, and product
checking;
Logistic management;
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