How to find a suitable supplier in China: 5 step here!

As the “world’s factory”, China has 41 industrial categories, 191 medium categories, and 525 subcategories. It is the only country in the world that owns all industrial categories in the UN industry classification. It means that you can find anything you need: from clothing and footwear to aerospace, and from raw materials to industrial machines. However, it does not mean that the most suitable one can be easily found in a short time. How should we find the best supplier for the company?

Collect supplier information

  1. Comprehensive sweeping online and offlineto collect enough information.

Collecting information online generally through search engines such as Baidu, Alibaba, Made-in-China, Google, and other professional platforms, including software such as Qcc and TianYanCha, can find the information of suppliers.

Offline is to query through yellow pages and business registration information. Chinese suppliers are forming a centralized trend. So searching for a certain area can quickly find suppliers in the same type.

2. The amount of information should be large enough and comprehensive. And we should collect all the informationtogether, constantly improve it, and form an information database.

Data analysis and preliminary evaluation

  1. Different companieshave differentindicators. we should determine what are the key evaluation indicators?
  2. Scoring, summarizing,and sorting all suppliers to find the best or most suitable supplier in the top ranking.

Now some evaluation dimensions mainly include the scale of the supplier, product type, the price difference of different processing modes. What is the lead time for different products? What is the quality status, quality level, and quality capability of different products?

How is the management level of the personnel and processes of the supplier? How far is it between supplier and company? The distance needs to be paid attention to because all the costs will be eventually calculated into the product price. All these will affect the effectiveness of delivery and the timeliness of delivery.

After scoring all the key elements, a ranking can be made for these suppliers. And the most suitable supplier for the company ranks first.

Setting business and requirements

Business usually includes price, payment cycle, return and exchange agreement, compensation agreement. What circumstances should the supply contract be terminated? And there are delivery requirements, quality requirements, and service requirements. After the  requirements approved, a shopping agreement or supply contract may be formed.

Daily supplier management

The first step is basic management, including technology, assets, employees, and processes. They specifically show in the quality, delivery, service, and cost of the product. And from these four aspects to estimate whether it is suitable to continuously supply the company.

Second, does the supplier process a continuous supply capability? The quality judgment includes defective rate, cost of quality, loss of quality, the passing rate of the first sample, number or rate of occurrence of quality problems, customer returns, warranty, and related maintenance costs.

Third, considering the price reduction. When the quantity reaches a certain level, how to give feedback? What are the payment terms? What about the lead-time issues?

From trading to partner

From a short-term trading relationship to a strategic partnership, there are usually three stages:

The first stage: Trading relationship. Both parties considered only short-term benefits and even considered a one-time transaction.

The second stage: Stable cooperative relationship. The transaction relationship between the two parties is becoming more and more stable and mutually beneficial, and no longer simply transfers any responsibilities, costs, and expenses to suppliers.

The third stage: Deep strategic partnership. Both parties formed a community of interests and finally formed in-depth strategic cooperation. Establish strategic partnerships through agreements, such as ordering in advance, sharing risks, sharing benefits, and letting suppliers benefit.

The market demand is changing rapidly, and if any link is not guaranteed, the progress of business will be difficult. Now you can easily avoid these problems. HiGlobal International Consulting always devotes to providing you with the lowest cost, highest efficiency, and safest medical supplies. We help you in product sourcing, price negotiation, factory audit, QC, legal support, and after service. Making you more resilient in the global value chain and protect your business and family from beginning to end is what we are doing. Get in touch with us to start a profitable business NOW!