We originally discussed the types of suppliers you might use when sourcing from China, including the option to do your own sourcing!
In order to help importers who want to follow that route, we’re creating a series of episodes that explore how to source effectively from China and get a great result, with insight, tips, warnings, and best practices from Sofeast’s CEO Renaud Anjoran.
In part 1, we focused on the earliest sourcing stages: finding your potential suppliers, verifying them as being suitable, and creating backups just in case.
Now, here in part 2, we’re going to explore how to avoid being taken for a ride by unscrupulous suppliers, the terms you need to negotiate from the getgo, why it’s practical and smart to keep some leverage over suppliers, and how devising a clear quality standard will help you get exactly what you’re looking for from suppliers before production starts.
Watch: Watch it on YouTube
- 00:00 – Introduction.
- 02:20 – The importance of preparation and looking experienced when negotiating.
- 05:27 – Terms you need to negotiate:
05:50 – The price of the goods
07:02 – Lead time
09:58 – Incoterms
10:53 – IP protection
12:11 – Transparency over the supply chain & access to the manufacturing site
15:35 – The quality standards
17:53 – Payment terms
- 24:29 – How to keep leverage over suppliers?
- 28:09 – Payment tools that benefit importers.
- 35:36 – Keeping control over your tooling (injection molds).
- 38:20 – Paying by letter of credit.
- 40:49 – The quality standard and how to clarify what you need.
- 49:13 – Wrapping up.
- Negotiating With Chinese Suppliers: The Terms you Need to Discuss
- How To Keep Leverage Over Suppliers
- Pre-Production: Describing What You Want
- 9 Things Small Importers Can’t Negotiate With Chinese & SE Asian Suppliers [Podcast]
- Incoterms – what are they?
- How To Create A Valid Manufacturing Contract In China To Protect Your IP
- IP Protection in China when Developing Your New Product [Importer’s Guide]
- How to Pay Chinese Suppliers by T/T Payment (Bank Wire Transfer)
- How to get a Chinese supplier to accept a letter of credit
- How to move Plastic Injection Molds between China Factories [10 Tips]
- Documenting Your Company’s Quality Standard into the Details
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