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Common Pitfalls of Sourcing from China - Huw Johnstone


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Huw explains very clearly some common issues to avoid when you are sourcing from China in our Cardiff Online Seller Meetup

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Common Pitfalls of Sourcing from China - Huw Johnstone

  1. 1. Sourcing, Procurement & Logistics: - Common problems and how to avoid them By Huw Johnstone GHL Sourcing presents:
  2. 2. Introduction GHL Sourcing is an “all in one” sourcing, procurement and logistics company who specialize in Chinese products and manufacturing. Problems: Two Categories: Assumption & Timing
  3. 3. Firstly….. You need to know your product
  4. 4. Sourcing Problems • How do I know this is good supplier? • What are the signs this is good supplier? • How do I know the quality is good? • How do I ensure the goods are the same as the sample? • How do I communicate with them? • What certification is needed to import the product? • When should I be paying for a product? History is great predictor of the future
  5. 5. A Points Based Evaluation System
  7. 7. Procurement Problems • The product is faulty • The goods won’t be ready for months • The packaging is very poor quality • The cartons have no markings • The cartons are too heavy • They have changed the product without talking to me You must have checks and measures in place to catch mistakes
  8. 8. Procurement The Main Steps - Pre Production Sample - Making sure the PO has all the correct details (most of the time this is your contract) - Sending Payments to China - Production Inspection - Production Samples - Pre Shipment Inspection - Final Payment
  9. 9. Logistics Problems • Its costing me more than I expected • How should I be buying the goods? FOB, CIF, EXW? • My goods arrived damaged? • I seem to be paying more than expected on arrival. Why? • What are the import cost? • My goods have been stuck in customs for months. Why?
  10. 10. - Know your product - Verify your factory - Check on production and the goods before you pay for them - Know your purchasing terms - Have your documents ready for import