Let me give you some inputs. Please read the following points I put together.
Process for China sourcing:
1. Identify cost saving projects (high volume, high dollar)
2. Collect data such as current price, usage, product specifications, engineering drawings form internal or existing suppliers
3. Find China suppliers
8226; Chinese Trade Fair
8226; B2B website
8226; Search Engine
8226; Industry Association
8226; Contact
4. Send info for RFI, RFP and send supplier evaluation form
5. Evaluate proposals from suppliers
1.) Dump the following suppliers at the first sight:
8226; They sell copy brand products at extremely low price
8226; Those that don’t have website, and only registered on a free B2B website.
8226; Companies that use a personal account and Western Union to accept payment only
2.) Compare price and service level to further narrow down the list
8226; Cut the suppliers with high prices
8226; Cut the suppliers that you think have a communication barrier
3.) Check the supplier
8226; On-line background check
8226; Check with Chinese government agency
8226; Check with customers
4.) Sampling or placing a trial order to select the best supplier
5.) Engineering test samples
6.) Visit company
a) Whether the company exist in the address of its business license
b) The equipment of the company to estimate the monthly production capacity and technology level
c) The assets of the company, for example, how many building, how many cars, etc.
d) Registered capital of the company
7.) Certify supplier
a) Management responsibility
b) Quality system
c) Contract review
d) Design control
e) Document and data control
f) Procurement
g) Product identification and traceability
h) Process control
i) Inspection and testing
j) Control of inspection, measuring and test equipment
k) Corrective and preventive action
l) Handling, storage, packaging, preservation and delivery
m) Control of quality records
n) Internal quality audits
o) Training
p) Servicing
q) Statistical techniques
Process for China sourcing:
1. Identify cost saving projects (high volume, high dollar)
2. Collect data such as current price, usage, product specifications, engineering drawings form internal or existing suppliers
3. Find China suppliers
8226; Chinese Trade Fair
8226; B2B website
8226; Search Engine
8226; Industry Association
8226; Contact
4. Send info for RFI, RFP and send supplier evaluation form
5. Evaluate proposals from suppliers
1.) Dump the following suppliers at the first sight:
8226; They sell copy brand products at extremely low price
8226; Those that don’t have website, and only registered on a free B2B website.
8226; Companies that use a personal account and Western Union to accept payment only
2.) Compare price and service level to further narrow down the list
8226; Cut the suppliers with high prices
8226; Cut the suppliers that you think have a communication barrier
3.) Check the supplier
8226; On-line background check
8226; Check with Chinese government agency
8226; Check with customers
4.) Sampling or placing a trial order to select the best supplier
5.) Engineering test samples
6.) Visit company
a) Whether the company exist in the address of its business license
b) The equipment of the company to estimate the monthly production capacity and technology level
c) The assets of the company, for example, how many building, how many cars, etc.
d) Registered capital of the company
7.) Certify supplier
a) Management responsibility
b) Quality system
c) Contract review
d) Design control
e) Document and data control
f) Procurement
g) Product identification and traceability
h) Process control
i) Inspection and testing
j) Control of inspection, measuring and test equipment
k) Corrective and preventive action
l) Handling, storage, packaging, preservation and delivery
m) Control of quality records
n) Internal quality audits
o) Training
p) Servicing
q) Statistical techniques
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