Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Common Pitfalls of Sourcing from China - Huw Johnstone

1,233 views

Published on

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

Published in: Business
  • Be the first to comment

  • Be the first to like this

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
  6. 6. THE “GHL” SOURCING & PROCURMENT 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

×