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>>>>>> Questions
and Answers
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| 1. |
How much savings
can we expect by sourcing from China? |
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2. |
What is the general process of sourcing
in China? Is it an easy job? |
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| 3. |
How is your quality level and supply
capability? |
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4. |
I have heard a lot
stories about failure in sourcing in China, what is the reason? Is
it risky? |
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| 5. |
What are your current customers
for reference? |
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6. |
What kinds of items
are suitable for sourcing in China? |
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| 7. |
How to prepare a good inquiry for you? How long is
your quotation time? |
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8. |
How long can you make a sample for approval?
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| 9. |
What is your payment term for tooling costs? Is it
a risk for us? |
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10. |
How long will you be prepared for production?
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| 11. |
What is the production time for each delivery? |
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12. |
How do you do your quality control jobs?
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| 13. |
How do you choose your manufacturing plants? |
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14. |
How about the shipping time from China
to here? |
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| 15. |
What is the easiest way for handling the shipment?
Can you ship to our door? |
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16. |
We have our own shipping agency, can
you ship to them? How is the costs difference between you and them?
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| 17. |
What are the import duties? |
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18. |
Is it
a complicated job to clear the customs, and all the paper works
for import? How to handle with that? |
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| 19. |
How is your payment term? |
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20. |
How
about if the quality of your delivered products do not meet our
requirements? How will you make compensations?
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| 21. |
How would you offer your service to us? |
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>>>>>>
Answer |
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1: |
| How much
savings can we expect by sourcing from China? |
Generally, you can expect 15-40% savings
by sourcing from China. It varies by the types of the products:
the more labor intensive jobs, the more savings: such as machining
jobs, and metal assembly jobs. Because of the manpower costs
in China is rather low.
Sourcing from China will help to save your purchasing costs
and improve your market competitiveness significantly.
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2: |
What
is the general process of sourcing in China? Is it an easy
job? |
Sourcing from China is quite easy with
us, you only need to prepare to send us the inquiry, we will
handle the rest.
The general process is: |
| Inquiry,
Quotation, Price Confirmation: 15 days |
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| Building mould
and tooling, initial samples approval: 20-60 days
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| Mass
Production and delivery for each order: 30-45 days
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First
you may need to send us inquiries with samples and drawings,
and annual usage quantity, we will quote you within 10 days
the price and feasibility study for your products.
If the price is acceptable for
you, we will build the tooling and mould and do quality checking
jobs for you. Initial samples will be offered to you around
20- 60 days. After that, there may be some feedbacks from
you and some correction jobs, this will take another 15-20
days. Then we are ready for mass production for your order.
For each order delivery, generally
it will take 30-45days for production, then we can ship out
the goods for you.
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3: |
How is your
quality level and supply capability? |
We are implanting ISO/TS16949 quality systems,
and are using numerical controlled CNC to work, all our casting
subcontractors are ISO9000 certified shop. We can also do
process control as customer requires, PPAP, SPC ect. |
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4: |
I have heard
a lot stories about failure in sourcing in China, what is
the reason? Is it risky? |
The key factors for the success of souring
in China include:
1) precise technical translation,
2) good facilities with engineering team
having good knowledge about customer's quality requirements
3) deep knowledge and experiences about Chinese
local industry, technology
level and price level,
4) local on time, at sight technical support
and quality control jobs,
5) shipping service to customer's warehouse
and foreign currency transaction service.
We have combined all these factors within
our company.
To ensure your sourcing jobs successful,
you need a good partner and support system like us.
Without this system, randomly choosing manufacturing
plants by searching the internet is generally risky, some
failure story may have the following reasons:
• Some
times the plant in reality may not be same it is on internet;
• The American technical
drawings are quite different from Chinese drawings. Very few
plant engineering team have professional English translators.
For an English drawing, if only 5-8% of the specifications
are mistranslated or not well understood at the beginning,
in mass production situation will be out of control.
• Without local
quality control jobs at sight, customer can only see products
when they arrive warehouse, 30-40 days after shipment. For
a component with 20-30 spec requirements, it is of high possibility
that some thing may go wrong when customers finally receive
it.
• Without local quality
control audit, when something is found to be wrong by customers
1 month after shipment, it is generally not an easy job for
the Chinese speaking plant engineers to understand correctly
and effect good correction jobs. And for corrections based
on feedback from overseas customers after 1-2 month, it is
always very time and money costly. |
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5: |
What are your current customers for reference? |
Our current customers include world class
companies, some of them are:
Ingersoll Rand, INA, Medeco, Varianta ect. |
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6: |
What kinds of items are suitable for sourcing in China? |
The most suitable components are:
• Higher volume parts:
develop an new product from far away offshore country will
involve a lot of jobs and costs: building new tooling, quality
control, new process control, customer feedbacks and confirmation
ect. If the purchasing quantity is big and not so many items,
it is economic that with limited efforts, customer will save
significant purchasing costs.
• Labor intensive
parts: If labor costs such as machining ,welding and
assembly are the major costs portion of a component, it is
a suitable part for sourcing from China, as the labor costs
are low in China, and in this way, it will save good purchasing
costs for customers. |
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7: |
How to prepare a good inquiry for you? How long is your quotation
time? |
It is very helpful for customer to send
the inquiries with drawings, expected purchasing quantity,
and samples. Samples are always very helpful for us to give
a confirmed price and figure out correct manufacturing process.
Generally, it will take 7-10 days for us to send out a quotation
and feasibility study report. |
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8: |
How long can you make a sample for approval? |
For simple machining, we can
send out samples within 7-10 days. For casting and stamping
jobs that need new tooling, We can generally finish building
the new mould and tooling and submit initial samples within
around 45-60 days, with all the material certificates and
size and tolerance checking reports. |
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9: |
What is your payment term for tooling costs? Is it a risk
for us? |
For the tooling costs, customer only need
to pay 40% in advance, we will bear the rest of the costs
from our side. After sample approval, customer pay the rest
60%. In this way, we will share the risks in development of
a product together with customers. If the project turns out
failure due to some reasons, we will return the 40% down payment
to customers. |
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10: |
How
long will you be prepared for production? |
When the initial samples are finished and
confirmed, mass production is ready. Generally, it will take
45-60 to be ready for mass production from ordering time.
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11: |
What is the production time for each delivery? |
30-45 days. |
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12: |
How do you do your quality control jobs? |
• When
any new drawings coming to us, we will have professionally
trained translator to do all the technical translations, turn
all the specifications detailed into Chinese;
• Based on the requirements
of the products, we will design the most suitable manufacturing
process to work out the parts;
• Before building tooling
and mould, our quality engineering team will study the drawings
carefully, establish process control and final quality standards,
and clarify the potential problems in manufacturing process;
• When the mold and tooling
are finished, our engineering team will check the material,
make full size checking of the samples, improve the manufacturing
process, and offer the initial samples for customer confirmation
with full lay out report.
• And if there is
some feedbacks from customer, we will ensure that further
corrections are made in time. Once the samples are approved,
we will be ready for mass production.
• For mass production,
we will have process control quality system to be established,
and all products are carefully checked before delivery. SPC
can be implanted in mass production. |
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13: |
How do you choose your casting manufacturing plants? |
We choose the most suitable plants by:
quality, price, previous experiences in similar products,
cooperative and honest business behavior. In this way, we
will arrange the most suitable plant to work for our castings.
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14: |
How about the shipping time from China to here? |
Generally, 16 days to west coast of US,
28 days to US east coast, 18 days to major European seaport.
Another 5 days for import custom clearance, 5 days for inland
transportation.
Totally, it will take 30-45 days for goods arrive customers'
warehouse. |
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15: |
What is the easiest way for handling the shipment? Can you
ship to our door? |
We can ship directly to customers' warehouse,
and help to handle all the sea and air shipment, import duty
and documentations, and inland transportation jobs. So, customers
can wait for goods arrive warehouse easily. |
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16: |
We have our own shipping agency, can you ship to them? How
is the costs difference between you and them? |
We can also cooperate with the shipping
agency that customer familiar with, send goods to major Chinese
seaport or major US or European seaport, let them do the rest
of shipping jobs.
But generally, our total costs from China is 20-30% lower
than customer's domestic agencies. |
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17: |
What are the import duties? |
Generally, it is around 3%. In some cases,
it is 0%. |
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18: |
Is it a complicated job to clear the customs, and all the
paper works for import? How to handle with that? |
| We can help customers to do all the shipping,
custom clearance, and inland transportation jobs to send goods
directly to customers warehouse. This will make the souring
jobs very easy for customers. |
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19: |
How is your payment term? |
We require 80-100% payment against delivery
for new customers. But for this payment term, we can consider
some price discount for customers.
For trusted long term customers, we can consider payment
at receipt of goods. |
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20: |
How
about if the quality of your delivered products do not meet
our requirements? How will you make compensations? |
| We will be fully responsible for the quality
problems. If customer receive unqualified products, we will
air ship the components at our costs and compensate by full
replacement of products. |
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21: |
How would you offer your service to us? |
In both US and Europe, we have local representative
for customers to communicate with, and we have fluent English
speaking customer service people to translate all your requirements
into Chinese for engineering team to execute your requirements.
For shipment, to make it easier for you, we can ship directly
to your warehouse. |
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