A wider range can increase revenue, improve customer retention and reduce dependence on one product. It can also turn a healthy business into a warehouse full of slow stock. Relying solely on the fact that your long time Chinese manufacturing partner tells you that this product is “trendy” does not necessarily mean that your stocks will sell fast. The decision how to expand your product portfolio with China suppliers is yours only. And you are in the best position to assess your market, retail or wholesale price, and all the key parameters that ensure the success of a new addition to your product range. In short: To expand your product portfolio with China suppliers, start with proven customer demand, choose the right development and supplier route, calculate the full landed economics, qualify the manufacturing process, and use a pilot order before scaling. The supplier should support the product strategy. The supplier catalog should not define it. What It Means to Expand Your Product Portfolio With China Suppliers Product portfolio expansion means adding products that give customers a relevant new reason to buy. It does not necessarily mean entering a completely new industry. For most importers, the lowest-friction opportunities sit close...

A sourcing company reduces procurement costs when its supplier access, product knowledge, quality control, logistics coordination, and local follow-up remove more cost than the company charges in fees. The saving should be measured against the buyer’s total procurement cost, not only against the lowest factory quotation. Consider a 50,000-unit order. A $0.20 reduction in unit price saves $10,000. One $8,000 emergency shipment and $4,000 of rework turn that apparent saving into a $2,000 loss. This is why a useful sourcing company works on the complete cost of the order: product, quality, logistics, inventory, cash exposure, internal workload, and supplier risk. In short: the sourcing company’s job is not only to identify the best value for money offer from manufacturers. A sourcing agent’s procurement value lies in its ability to reduce expenses and risks throughout the order in China process. It empowers international buyers with additional, sourcing-specific skills, and prevents business exposure to quality costs and brand damage. Start With the Full Procurement Cost, Not the Unit Price Purchase price is only one cost layer. The European Commission’s guidance on life-cycle costing makes the same basic point: acquisition price does not capture every cost of purchasing, using, and disposing of a...

For the last century, and especially since the 11th december 2011, many importing businesses have tried to develop China sourcing strategies, with more or less success. With a third of global manufacturing taking place in Asia today, there is no shortage of suppliers, forwarders, or third party companies to help importers. Still, because of a huge gap in culture, pace and means, many buyers find it difficult to set up a robust supply chain in China, that both ensures competitiveness and consistent quality. As a leading sourcing company, JS Sourcing specializes in helping businesses navigate the complexities of China sourcing. This guide explores the most effective strategies for sourcing from China, ensuring quality, cost-efficiency, and long-term success. Why Choose China for Sourcing? China remains the world’s manufacturing hub due to its vast industrial base, skilled workforce, and cost advantages. Companies of all sizes turn to China sourcing to access a wide range of products, from electronics to textiles, at competitive prices. However, to fully leverage these benefits, businesses need a thoughtful sourcing strategy and a reliable sourcing company like JS Sourcing to guide them. Key China Sourcing Strategies for Success 1. Define Your Sourcing Objectives Clearly Before diving into the...

I keep fond memories of my first sourcing assignment. It was both difficult and stressful, especially when it came to sourcing costs. During that first project, I understood that the initial quote from a supplier is a bit like the first five minutes of a movie. It gives you the premise, but it certainly doesn’t tell you the whole story. For some time, I was amazed at some buyers who’d like to brag about a low unit price they’d just negotiated. They made it sound like a victory. But I know better now. As I became a seasoned procurement professional, I learned that unit price and COSG (Cost of Sold Goods) are two very different animals. If you want to increase your value as a buyer and protect your company’s bottom line, you need to look beyond the unit price on the invoice. This is why I decided to write about all the sourcing costs that a purchaser has to deal with on a daily basis. I organized this post into 3 sections, from the most obvious sourcing costs to the least obvious. I hope that my take at categorizing costs into: cash, time, and labor; will make sense to...