A lot of people are scared of sourcing goods from China. This is mainly due to rampant stories of fraud. There is also a misconception that goods made in China are of a poor quality.

Every country has its fair share of problems regarding frauds and the best that a buyer can do is to vet suppliers and make sure to use the right procedures and channels.

My first visit to a Trade Show in China was in 2006. It cleared away the broad and often wrong misconception that goods from China are of a poor quality. I had not seen an array of such top quality goods in one place. Displayed magnificently across the gigantic Guangzhou Complex was goods of all kinds, TVs, phones that I thought were concept phones, you name it. It is however possible to still get poor quality goods. One factory may produce exactly the same type of goods but with different qualities. The product specifications would depend on destination country’s regulations and product price.

Every month, we get people who approach us to resolve issues with their China suppliers when sometimes it’s too late. To avoid disappointments in your China sourcing efforts, there are four simple steps to follow.

Firstly, not every product is economic to source from China. However if you find benefit in sourcing from China, get a couple of vetted suppliers for comparison. It is not enough to select your supplier based on the price alone. Check other factors like supplier credit and trade ratings, factory compliance and regulation, how your Intellectual Property is going to be protected, legal recourse in disputed cases and more.

Secondly, when you are successful in getting a supplier, the next step is to agree on terms and conditions regarding payments, delivery dates, quantities and quality. The agreements should be legal and enforceable. You may also consider signing confidentiality agreements to keep your transactions just between you and the supplier.

Thirdly, appoint Inspectors. Most people are concerned about the quality of goods from China. It is important to appoint independent inspection companies to do quality checks, in-production checks and pre-shipment checks for you.

Lastly, keeps the ball rolling. If you are lucky with your first supplier, keep on looking for suppliers to increase your supply base and reduce risk. Supplier vetting and scouting is almost a full department job. Most big international corporations like Sony and Toyota have moved their whole procurement departments to China. This may not be feasible for smaller and medium sized companies.

The option to carry in-house sourcing or to outsource to professional Sourcing Project Managers depends on the organisation’s objectives, savings made, levels of efficiency required and any other factors.

This four step rule broadly gives the basis and structure of how to successfully source form China. There are other softer issues like communication and understanding the business culture. These form an essential part of the ‘Source successfully mix’ too. 

By Munyaradzi Madusise

Senior Consultant at Africa Sourcing Group (A.S.G) – South Africa. Can be contacted on This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

A.S.G is a Sourcing and Procurement Management Service in 10 countries helping companies to source goods effectively from China and other international suppliers.

www.africaSourcingGroup.com