Sourcing from China can give you several advantages such as cheaper product prices, affordable customization of products, and highly efficient production output.
It is cheaper to source products in China than it is domestically. China has more access to raw materials, which means a lower material cost, which means a cheaper end product. Additionally, several other costs involved in the production process are also cheaper than US costs. These include low rent for land to manufacture products and low labor costs.
This does not necessarily mean the quality of the final product will be inferior, but just that the production costs are different between the two countries.
Sampling and prototyping costs are much cheaper than the US due to the lower costs mentioned above (low labor and raw material costs). Kanary has relationships with design and engineer teams that help our clients customize the products they source specific to their needs.
When we shortlist our supplier choices for a customized product, the prospective supplier will be in contact with our design and engineer teams to make sure everything is explained in detail so they are on the same page in terms of design, functionality, and quality. This leads to a perfected end-product.
Factories in China typically have a large and cost effective labor force that can assemble and package goods at a highly efficient rate. For example, if you were to package goods in the United States, it would take longer to package 500,000 units than 100,000 units due to a limited labor force.
In China, you could package 500,000 units in the same amount of time as the 100,000 units because they have the low cost, accessible labor to do so. Moreover, material suppliers are usually in close proximity to assembly factories, making it easier to procure materials and assemble quickly.
One of the biggest mistakes you can make when sourcing from China is not ordering samples before making your purchase. There are so many important things to confirm during the sampling process. For example, the quality of the material, the aesthetics of the finished logo on the product, the dimensions of the product, the durability of the product, etc.
Ordering a physical sample allows you to confirm all of these things and approve the product for mass production. If samples are not approved, there is a good chance you may not be satisfied with the final product due to discrepancies caused by misunderstanding and/or miscommunication before mass production.
If you focus only on price, there is a good chance you will have potential quality issues. The lowest price or cheapest supplier can mean lower quality materials being used or corners being cut during the manufacturing process. This jeopardizes the quality of the final product. Kanary has many clients that insist on finding the lowest price.
We will do extra due diligence and extra rounds of sampling in order to make sure quality isn’t jeopardized. We also have highly effective negotiation tactics that help our price focused clients meet their price targets
Several things can go wrong if you do not implement supplier due diligence. For example, you can end up paying a higher price, receiving a finished product that is low quality or unsatisfactory, or experience unnecessary delays during the manufacturing process.
Kanary has a rolodex of suppliers that we have had successful relationships with for years. However, when looking for new manufacturers we will initially talk with 10-20 suppliers, see who meets all of our criteria, and narrow it down to 2 or 3 that are the best fit for our client.