• Alexander Prudnikov

How Supplier’s assessment works in China

The thumb rule of every business is that you need to identify the right person to deal with. Before starting trading business, you should focus on the right supplier.

When you are opting to do business with the vendors from China, then you must follow these steps to assess the supplier and start working.

With some research, you can find the appropriate supplier for your business. The assessment is necessary to choose the best among the better.

As we have already mentioned that different steps come under the supplier assessment process, in this article we will describe two major steps of successful assessment which are preliminary check and onsite check.

Preliminary check

In this section, you need to go through the process of shortlisting manufacturers without visiting them, but just contacting them remotely.

In order to achieve maximum results of the preliminary check, you should call the supplier first and ask them to provide you with detailed information about the company including scan-copies of business license, export certificate, ISO/TUV assessment reports if any. If you receive this doc’s you can easily use the unique numbers of certificates to check its authenticity on the official websites of the certification authority. Having a business license number in your hand allows you even to check if there are any penalties or if the company has been put on the blacklist.

To find the suppliers you can use different tools, there are several online platforms like Alibaba, Made-in-China or GlobalSources which can be very useful. Or else you can visit different offline exhibitions or business fare which will help to get the contacts of suppliers. Be aware of the companies who are showing a different image from the reality of the company. It would be better to visit the manufacturers before placing an order this is how we get to the second phase of the successful assessment by going to check supplier manufacturing facilities onsite.

Onsite check

Once you shortlist the suppliers and satisfied with your preliminary check then you must move forward to onsite check, this is how you can know more about the quality and manufacturing processes of the product; this is how you can meet QC department managers, discuss product details with technical department of the factory, negotiate better conditions and lead time with the managers of the factory.

This is the final stage of the supplier verification, that's why it is very important to follow a number of steps, among which:

• Visiting the factory to get acquainted with its material and technical base, personnel, and management;

• Assessment of production capacities - obtaining a complete picture of the capabilities of the enterprise and the volume of the possible production of the goods;

• Assessment of the general condition of the factory - identification of the reality of the production and its compliance with the declared information;

• Description of the production processes - determination of compliance with current quality requirements and industry standards;

•Suppliers quality control system assessment - examination of required documentation as well as checking certain work processes and communication with authorized personnel to confirm its reliability.;

• Visiting the warehouse and assessing the workload of the factory - acquaintance with the products, their quality, and the ability to manufacture in the required time and in the right amount;

• Identify a legitimate manufacturer. You should avoid such factories that wish no to disclose their name, location, and other information, as well as those who are not willing to send you base documents of the company. Ask them to provide you with information about exporting products experience along with some customers' references. Get complete detail of manufacturing experiences and quality control procedures.

The results of the supplier assessment and its benefits for your company

Timely inspection of the supplier in China allows you to obtain answers to a number of questions, among which:

• The reality of the existence of the company/factory;

• Conformity to declared business activities;

• Availability of permits for production activities;

• Availability of export opportunities for the sale of goods outside China;

• The readiness of the manufacturer to cooperate with you;

• Your desire and willingness to sign an agreement specifically with this manufacturer.

With the help of the above-mentioned steps and suggestions, you can get yourself a good supplier in China.

This assessment process is universal and accepted by the majority of the importers from around the world.

I hope you find this short article useful and if you like it, I can keep on continue to post more information about tips and pitfalls regarding the suppliers' assessment in China.

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