Product Sourcing: Why Choose to Source In China?

Low-cost country sourcing (LCCS) isn’t firsthand. Tier-1 sportswear companies like Nike have been sourcing from Asia since the 1960s, but for a lot of SMEs its unmarked ground. Because of that, and a host of other factors, LCCS can be rather discouraging.

Why SMEs are sourcing from China?

China is the perfect starter-country for companies analyzing the waters of low-cost country sourcing. There are several factors that make China a good sourcing fit for the risk adverse SMEs:

  • Skilled labor – The Chinese labor force is vastly skilled. China can produce exceptionally intricate products from toys to electronics to automotive and machinery. Beyond the high complexity level of China’s output, one of the reasons that keep SMEs coming back is the speed at which goods can be manufactured. For many products, China can manufacture them better and faster than any other low-cost country.
  • Raw materials and sub-suppliers – Many low-cost countries in fact source their materials from China. China also produces cotton and many other raw materials required for manufacturing. Being able to source all locally decreases both cost and delivery times. And it lessens the number of countries, and therefore the level of difficulty, of low-cost country sourcing.
  • Mature supply chain – China has the years of experience to be able to guarantee quality throughout the whole supply chain from sub-suppliers. That, more than anything, is why China has become the standard for low-cost country sourcing.

How SMEs should source from China

For SMEs sourcing from China, there are a few major tasks that must be undertaken to lessen risk, increase the probable benefits and guide the process.

  • Identify Your Product – Before a company can source from a low-cost country it needs to first know its own product. Every low-cost country has different strengths depending on the necessities. Any organization thinking of low-cost country sourcing must know accurately what they are searching for in terms of these categories.
  • Recognize The Market – China is entirely different supply market. In order to enjoy the benefits that sourcing from China provides, SMEs must take the time to recognize the market. Procurement teams need a local understanding and knowledge of how the Chinese supply chain functions. Jumping into the market blind is really challenging and mistakes can be huge.
    Rising consumption and increased consumer demands are encouraging a more international approach to sourcing. SMEs are going further and further afield in the search for the lowest cost suppliers. Due to its development and constancy, a lot of companies are using China as a foundation. For small or medium-sized companies China is the perfect place to begin.

Do you want to know more about why sourcing in China? Chat with us now!

About the Author:

13 Comments

  1. Rebgaph June 5, 2019 at 1:04 pm - Reply

    Propecia Covered By Insurance 689 Buy Liquid Antibiotics Online viagra Kamagra Oral Jelly Gunstig

  2. oprol evorter June 6, 2019 at 10:46 am - Reply

    This is really interesting, You’re a very skilled blogger. I have joined your rss feed and look forward to seeking more of your fantastic post. Also, I have shared your web site in my social networks!

  3. Kelbluexy June 6, 2019 at 8:29 pm - Reply

    Cheap Viagra In Australia Amoxicillin Side Affects buy viagra Propecia Capsule Finasteride 1mg

  4. Rebgaph June 17, 2019 at 2:59 am - Reply

    Buy Viagra Online No Prescription Viagra Generico Espana Precio vardenafil canadian pharmacy How To Buy Virga 50mg Keflex Joint Swellings

  5. Kelbluexy June 18, 2019 at 2:33 am - Reply

    Propecia Renacidin How To Last Longer Naturally п»їcialis Finasteride And Propecia

  6. Shazam apk June 21, 2019 at 5:18 am - Reply

    Wow! Thank you! I continuously wanted to write on my site something like that. Can I implement a fragment of your post to my blog?

  7. Rebgaph June 28, 2019 at 3:05 am - Reply

    Kamagra Gratis Priligy Rischi viagra Where Can Buy Viagra Cheapest Price Cephalexin Dosage Puppy How Many Days Cialis 4 Tabletas

  8. Kelbluexy June 29, 2019 at 6:32 am - Reply

    Cialis Como Se Usa viagra Levitra Achat En Baisse

  9. Rebgaph July 10, 2019 at 7:25 pm - Reply

    Prescription Viagra Viagra Levitra Und Cialis Toxicity Amoxicillin viagra Cialis 10mg Wirkung Levitra De 20 Mg

  10. Kelbluexy July 12, 2019 at 8:06 pm - Reply

    Buy Generic Orlistat 120mg Online cialis cheapest online prices Generico Cialis Forum Amoxicillin Use In First Trimester Pregnancy Cialis Et Generique

  11. Rebgaph July 22, 2019 at 5:06 pm - Reply

    Where Can I Buy Viagra Or Cialis Fedex Doryx Mastercard Accepted Cheapeast cialis Dapoxetine 60 Mg Dutasteride Avidart Amex On Line

  12. Kelbluexy July 25, 2019 at 12:42 pm - Reply

    Effet Viagra Cialis buy generic cialis online Levaquin No Prescription With Free Shipping Store Wisconsin Discount For Celebrex

  13. view August 8, 2019 at 6:35 am - Reply

    I think you have noted some very interesting details, regards for the post.

Leave A Comment