28/04/2023
Stage 2 a&b: Sampling & Purchase Order
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ChinaDirect Sourcing Services
Import from Buttons to Bulldozers
https://www.chinadirectsourcing.com.au/
Start Importing call: 1300 168 869
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Welcome back. In this video, we will discuss the sampling process, a crucial and often challenging stage in the entire sourcing process, particularly for inventions or customized products. The duration of this stage can vary greatly, from as little as a week to several years, depending on the project's complexity.
During the sampling stage, if applicable, we will request three samples from you and send them to our China office. At the same time, our China office asks suppliers to provide samples showcasing their workmanship and quality. Based on these samples, our team will shortlist three suppliers to whom we will send your samples.
We will then finalize one supplier, request them to produce a sample, and send it to you for approval. If the sample does not meet your expectations, we will provide you with a 'Sample Improvement Requirement' template, where you can list the necessary changes. Our China office will then work with the supplier to make the required adjustments and send the revised sample for your second approval.
It is important to remember that the first sample you receive from a Chinese supplier may not exactly match your specifications or sample, even if you provided detailed information initially. So don't be discouraged if your first sample is of low quality or different from your request. The sampling stage can involve a back-and-forth process between you and the Chinese supplier, and our 'Sample Improvement' form will help you manage this effectively.
Our Supplier Selection Criteria. In choosing a supplier, we consider the following factors:
Credibility and Reputation
- History, experience, and track record: Suppliers with experience in working with Western countries are more likely to understand detailed requirements and expectations.
- Price, Quality, and Workmanship: We prioritize quality over cost, as low-priced products with poor quality are not a viable or sustainable option, often leading to customer dissatisfaction, potential product returns, and damage to a brand's reputation.
- Service Levels, Capability, Core Competencies, and the person managing the project.
- Ability to follow instructions.
- Willingness to comply with quality standards: Sometimes, we may recommend changing suppliers if they are unwilling to meet quality standards during the sampling stage.
For example, a client completed Research and Tender independently and requested our assistance starting from Sampling. The supplier they found offered competitive pricing, but they made numerous excuses for not complying with our quality inspection during the sampling stage. Before signing the purchase order, we recommended changing suppliers, and the client agreed. It is essential to consider how cooperative a supplier will be, especially when dealing with large payments and potential product faults.
Once the sample is approved, and you are satisfied, the next step is to negotiate the order. At this stage, we will draft a purchase order on your behalf and send it to you for approval. After your approval, we will translate it into Chinese, send it to the supplier, and negotiate on your behalf.
The Purchase Order will include clauses such as Quality Control Procedures, Terms of Payment, Mould Ownership, Packaging Requirements, and penalties for Quality Issues and Delivery Delays. Our Purchase Order is a tried-and-tested document designed to ensure the right product is delivered to the right place at the right time.
We incorporate detailed quality control procedures and draft favorable payment terms to minimize your financial exposure. We also include a price increase cap to prevent suppliers from raising prices dramatically when you place subsequent orders.
If you paid for the mould, then it will be your property. We also address any specific packaging requirements you may have for your product and enforce strict quality standards.
Furthermore, we include a practical clause for delay penalties. The penalties are not overly punitive but are sufficient to encourage suppliers to adhere to tight schedules, enabling us to penalize them while maintaining a positive working relationship.
Thank you for taking the time to watch our video. We hope it offered valuable insights into our Sampling & Purchase Order Process. In the next video, I will discuss the Production and Delivery Management stage; stay tuned!
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ChinaDirect Sourcing Services
Import from Buttons to Bulldozers
https://www.chinadirectsourcing.com.au/
Start Importing call: 1300 168 869
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