How dangerous it could be when sourcing from China? No matter what answer it is in your mind, following those tips from my pro-long sourcing experience in South China Pearl Delta Region would help to make sure you sleep well.

1. Ben Chu, SAOS Founder
-
- 15 years of experience in China Sourcing, Supplier management
- Previously worked in 3M, Black & Decker, EADS in their Asian operation capacity.
Found of SAOS HK sourcing, providing fix-cost sourcing service to its European clients
SAFE SOURCING IN CHINA AND KPI
IN SELECTING SUPPLIERS

2. “Usually, delivery risks are not communicated until too late”
“Unable to see the real situation. I have to rely only on my supplier’s information.”
“Poor quality is usually found after arrival. Even worst, we are unable to
prove or to identify whether the problem is coming from supplier or transport”
“Hard to negotiate anything. Unable to open higher
level business discussion with my supplier’s contact”
“I cannot ensure the quality improvement plan is really in
place, although they said YES in all meetings”
“We are buying everywhere from
China, and delivery cost is difficult to
control”
“I see from exhibitions, my supplier has better products, but they don’t inform me”

3. Challenge & Risk
Selection
•How do I make sure I buy at a
reasonable price?
•How do I make sure the
product’s compliance is ok
for the target market?
•How do I protect my benefit
legally?
•How to negotiate with
Chinese?
Longlisting
•Scam?
•Do they make this product?
•The “contact person” valid?
•Are they just trader without
value?
Shortlisting
•Do they meet our spec?
•Do they have the right
process for the work?
•Do they really know what we
want?
•Can I meet my price target?
New Product
Industrialization
•How to ensure right quality
and delivery target?

4. SAOS Anti Scamming Solution
Custom
Data
Check upon
government public
database for register
information
Use of custom
database like Panjiva
to check for past
activity
Phone
interview
Call, talk and evaluate
by experience
Chinese
Gov.
register
info.

5. SAOS Sourcing Process

6. Shortlisting and Selection
Commercial
offer
Technical
competence
Supply Chain
rationality
Shortlist of highly relevant
suppliers

7. New Product Industrialization
• Industrialize your product from design to final
product ready to be manufactured.
• Risks:
•
•
•
•
Production efficiency
At quality target
At cost
At delivery deadline

8. Safe Suppliers
Real trading
Experience
Product
safety
compliance
Pre-audit
Reasonable production
workflow

9. Safe Product
• Product that fully complies with targeted
market regulation.
• Product that can be imported directly from
China without safety risk.
• ProductIP database as a state of art source of
compliance information

10. Save your
total cost
Low
investment
Low risk
Highly
qualified
team
Flexible to
your
strategy