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Path: Sourcing News & Advice
>> Import from
China Advice >> Red flags buyers wave in China
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Red flags buyers wave in China sourcing

Posted: June 25, 2014

by Jacob Yount

Suppliers are not the only ones to wave red flags.

In China sourcing and manufacturing endeavors, buyers also wave big red,
ominous banners that scream alert! danger! time and money loss lurking around
the corner!

What do these big red banners look like and
how do suppliers react?

(This will be a part II to a recent post,
“Red Flags in China
Manufacturing“)

We Cannot Accept Any Mistakes: Mistakes go with China like wet goes
with water. The concept of “doing things right the first time” hasn’t taken off
there. For whatever reason (and the reasons are manifold) “precision” is a rare
find.

When one goes into a project with China, they need to be prepared for some
back-and-forth, some tweaking and some teaching. I’m not referring to settling
for unacceptable or dangerous quality but doing what it takes to work
together with your supplier to assure good production.

Approach Your China Vendor with the Same
Professionalism You’d Hope Your Buyers to Use…

Telling a supplier “we cannot accept any mistakes” may sound corporately
tough, but in China sourcing, you’re telling the supplier, “we’re not in this
together.”

We need it rushed and it’s gotta be perfect: I hope everyone gets the
kookiness of that statement. Especially in light of the above point on mistakes.
Suppliers don’t think rushed and perfect go in any sentence together.

Most suppliers will take your confirmation of a rush as a confirmation to
have an acceptable degree of sub-standard quality.

“I don’t care, just fix it!”: Here’s the scenario; the buyer
receives samples and there is an error.

The unhappy buyer tells the supplier about the problem and the supplier
starts to explain, from a production point of view, why this issue happens.

Before the supplier barely finishes his sentence, the buyer screams out, “I
don’t care, just fix it”.

It’s as if the the buyer waves his hand in a kingly decree and at that
command, his worker minions start scurrying about all over the factory floor
like Santa’s elves trying to make sure King doesn’t raise his voice again.

If anyone has any time under their belt in buying from China, then you’re
like me and we’ve all said something like that in the heat of battle. But it’s
not productive.

It’s like saying…

“I don’t want to learn about production
processes, I don’t want to be any wiser about obstacles that come up on the
manufacturing side, forget all that technical mumbo jumbo… I just want it
riiiiggght!!!!”

Now in reality, no serious buyer in China sourcing wants to be this way but
our actions show that we practically function this way more times than we think
about.

(Side note: consider that
learning that technical “mumbo jumbo” and learning about production processes
will actually make your a more learned and skilled buyer in not only importing
but also selling the product…. I know that may be a “duh” moment, but buyers act
like they don’t care about learning what goes on behind the curtain).

Lastly, keep in mind that with the “I don’t care, just fix it”, the supplier
may end up making another attempt that is equally wrong with more time and money
lost.

“Not acceptable”: This is first cousin to “I don’t care just fix it”.
Instead throwing out an abrupt rebuke on what’s “not acceptable”, be sure to
spend some quality time with your supplier
on clarifying what is
acceptable and how to implement

“I know production has started but we need to make some change”:

“Yikes! Who’s going to pay for the change? Are we supposed to stop
production? Is what’s already completed going to be rejected? You pushed us and
pushed us from the beginning so why is this red flag serious?”

…these are all examples of what the factory starts thinking in this
situation.

Or, even worse, communication doesn’t go efficiently enough go from the
supplier’s sales office to the production line and they don’t actually stop
production but keep proceeding with the original specs.

“I’ve got a lot of quotes from your competitors, I need your quote
asap”: This is how not to get a quote and if you do get a quote, then
beware. You didn’t take their potential partnership seriously, therefore,
chances are, the supplier is not seriously calculating the quote.

In China sourcing, you want the supplier to appreciate your inquiry and
carefully calculate. Otherwise, you may end up confirming to your buyer an
incorrect price.

Discussing payment terms close to shipment: Unless it’s
been clarified up front and unless you’ve got a long-term good working
relationship with the factory, they are assuming the balance payment is in their
account before the goods leave their factory. Raising these concerns
close to the end of production can create a worry with the supplier over your
commitment to pay. This in turn can actually lead to a delay.

Clarify payment terms way in advance and
put your red flag away.

Jacob
Yount lived in China from 2001 to 2012, during which time he started JLmade.
He is now based out of North Carolina in the US and his home office is still in
Suzhou, China; manufacturing and exporting branded merchandise, promotional
products and retail gifts for distributors worldwide. Contact Jacob at [email-masked],
or find him on his blog.

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