A fast search using a number of their supplier identification and matching services will readily yield hundreds of potential”matches”. Some of the sites even provide a list of so called”trusted” suppliers, where they have been”visited”,”verified”, and”approved”. There is not any wonder that these suppliers are better of the crowd. But, there is scarcely sufficient signs to pick any of these”selected” providers. The most useful these services can provide is really a very long list of potential suppliers. Unless you’re blessed with unlimited tools to carry out an in-depth appraisal of each and every supplier, the likelihood of finding the perfect supplier from the list, unfortunately, are slim. To improve your chance of sourcing success, here are some approaches to help you to navigate throughout the sea of suppliers:
- Redefine the corporation’s sourcing”value”: Whether is it low priced, high quality, high tech, china sourcing company to put money into tech, prospective expansion program, company measurement. . .etc. One may refer to the international procurement strategy to determine the sourcing target for the industry. The theory is that, all requirements said are”crucial”. But, using a scorecard to find out the sourcing worth, then it will make selecting suitable suppliers much simpler.
- Ascertain the region best fitted to your source: Great suppliers are scattered throughout the globe. You might spend the next time to go to every one of them. Again, it is best to get a global procurement plan, also give attention to one area to meet your procurement needs. This won’t only minimize the sourcing efforts, but also decrease the logistics cost.
- Focus on a huge pool of providers : After a location has been defined, establish a very long list of providers. Several of the usual methods are: Internet, recommendations / reference, trade books. . .etc. You can also solicit from your existing supplier base for potential providers. The goal with this exercise is to force your sourcing section to check”out the box” in search of their most suitable providers.
- To pass evaluation: Match the pool of providers against the provider’s sourcing value. This is done using phone interviews, web polls, site visits, or sales presentations. The aim of the initial pass evaluation is to narrow down the huge pool of providers down to a manageable group. Depends upon the magnitude of the sourcing project, and the associated monetary value, it is acceptable to narrow down about 5 to 20 suppliers.
- Contact the providers: Email generally is the tool of selection in United States of America. In China, but it’s best to call up the sales, or perhaps the general manager, when the contact information is understood. Publish your company to them to assess the interest level. I can’t usually stress enough even with technology in these times, a person voice, or putting a face to your name, is an important aspect of conducting business in China.
Now you have identified a set of potential suppliers, it’s time to choose the best of this bunch. We’ll examine a few of the techniques used to successfully source in China at the next article.