Benefits Of Visiting Your Supplier’s Manufacturing Premises
Many importers and traders are found asking why do we need to visit suppliers?
In the world of eCommerce, there is a lot of facilitation to run your business. Many traders and importers get allured by Gold-Status, attractive, and organized Alibaba sellers. In most cases, these sellers are enough for traders to decide to do business with the suppliers.
But is it actually enough?
The answer is no.
You should not be judging a book by its cover. And it’s more crucial when it’s about the future of the business you’re trying to establish. Without suppliers verification, negotiations, and understanding the manufacturing process, you cannot do business. It will be equivalent to walking on a road with blindfolds on your eyes. You never know where you will reach.
Visiting your suppliers’ manufacturing premises before signing documents is preferable and good practice in general. We have listed the benefits and reasons why do we need to visit suppliers’ premises in China before we actually start doing business.
Why Do We Need To Visit Suppliers?
Here are the reasons we need to visit suppliers in China and the benefits you can get as a businessman.
Verification of Chinese Suppliers
Many eCommerce businessmen and entrepreneurs become a victim of void contracts(not signed by actual legal representatives), payment frauds, and other risks. The first step to take before you start doing business with Chinese suppliers or companies is verification.
Physical visits can ensure that you’re planning to do business with legitimate companies and suppliers authorized to do business in China. You can meet the legal representatives, visit the factory/warehouse, check documents, etc. Therefore, traveling halfway around the world will be worth it before you get into a real business.
When importing products from China, several risks can be overcome by making personal visits and verifying Chinese suppliers. Learn more about the hidden risks of importing from China:
Negotiations With Supplier In China
The legitimate and professional companies, suppliers, and manufacturers appreciate the traders visiting the premises before signing the contract. The personal visit is a positive intent from the buyer that he is interested in doing business in the future. Therefore, companies are more open to such clients, and traders get an opportunity to negotiate favorable pricing and payment terms.
Understand Working Model and Manufacturing Process
Visiting the suppliers in China is an opportunity to understand the manufacturing process and working model. You get insights into what products they are manufacturing, quality standards followed, standard procedures, etc.
As a trader, you can also get to know if your required product is a core business of manufacturers or they have diversified their products. You get a closer look at the manufacturers’ supply chain and get to know which operations are outsourced by the company. you also get an opportunity to visit the infrastructure of the manufacturing company.
Why is it important?
When you closely observe the process, strategic partners, products, and infrastructure of the manufacturer, you can get insights like:
- Quality Standards and Procedures Followed
- Give Ideas To Customize Your Required Products/Goods
- Having all the in-house manufacturing manufacturers in China will give you better pricing terms.
These factors are very crucial in decision-making as an importer/trader dealing with Chinese suppliers.
Simple. Free. Advice. No Obligations.
Due Diligence And Quality Control
No matter how good the claimed internal QC and QA the manufacturer has, due diligence is the responsibility of the importer/trader. It also sends message to the manufacturer that the importer is serious about the products and business.
When you closely observe and understand manufacturing protocols, you will be able to point out any deficiencies or improvements to enhance product quality and reduce defects. You can give suggestions to the manufacturers about how they can differentiate the product from what others have been doing. It results in a more collaborative experience resulting in a better quality of your products.
Find Out If Dealing With Chinese Suppliers, Chinese Manufacturers Or Trading Companies
You must know who you’re doing business with. Many trading companies, suppliers, and intermediaries will tell you that they are manufacturers. The reason is Chinese culture, where suppliers claim to be manufacturers.
Generally, there is no issue in dealing with a supplier or trading company if they’re satisfying your requirements. But it’s professional etiquette to declare everything to your strategic partner. Suppose they’ve been hiding the fact about being a trading company. In that case, it could leave a negative impression on you at finding out the truth by physical visit.
You can make physical visits to know who you’re actually trading with. You can decide about signing the deal with the supplier in China after knowing their identity. If you’re not able to make a personal visit, you don’t have any other option to believe the supplier.
Visit Other Suppliers And Manufacturers
Once you have landed in the market, you can also visit other suppliers and manufacturers in China. It’s possible in China because the markets and industries are condensed in specific cities and provinces. Therefore, you can get a bunch of suppliers and manufacturers in the same neighborhood.
Besides, having options is always good for you. You can choose the best Chinese supplier or manufacturers in China who are professional and meet your requirements. Above all, you get an opportunity to understand the supply chain of your niche and get more expertise. With more knowledge and understanding, you can ask more legitimate questions to the suppliers before signing a deal.
Human Connection And Personalization
Guanxi is a Chinese term used in Chinese business culture that implies the importance of Human connections and personalization in business. It’s the most crucial part of doing business, and unfortunately, eCommerce has reduced it to a notable level. When you’re going to make strategic partnerships with manufacturers in China/suppliers in China, it’s best to indulge in relationship building to positively impact your future dealings.
Personal Visits Or Choose Third-Party Inspections?
Most online guides and expert advice tell you to always make a physical visit to overseas suppliers’ facilities. But is it actually a good practice for every businessman?
Undoubtedly having your boots on the grounds is very crucial for your business. Know more about the importance of having an On-The-Ground presence here:
But personal visits might not be practical for every business. Making personal visits or hiring services of third-party inspection agencies depends on your needs and requirements.
If you have larger lot sizes, higher profit margins, and more-than-often shipments, making a personal visit before signing the deal is a good idea. Besides, you can make visits once in a while because it can be adjusted in the cost of goods.
However, suppose you’re doing an eCommerce business with smaller lot sizes and not-too-often shipments. In that case, personal visits are not cost-effective and efficient. If you’re the anchor of your business, it’s easy to lose direction by trying to make out time for such personal visits.
What is the best solution in this situation?
You can hire specialized third-party inspection companies to perform supplier verification, filter out suppliers by attending trade shows, pre-shipment inspections, etc. The third-party inspection company will conduct the due diligence, communication, and dealing with the Chinese suppliers as your representative.
How Can GlobalTQM Help You?
GlobalTQM has several solutions for the importers and traders looking to start doing business with the manufacturers in China and Chinese suppliers. We make tailored solutions for our clients to help them source the best products from China’s most competitive manufacturers and suppliers. It’s free to call us anytime and talk about your requirements.
You can get started with our supplier verification services and supplier visit services here: