Member Article

5 Reasons to source from China in 2016

1. Improve competitiveness and boost your profit

So you’ve heard about manufacturing ‘reshoring’ back to the UK, costs rising in China and the Chinese economy going all wobbly. Time to move on and forget about China? Well, you could be missing out in a big way if you do. China is still very competitive in manufacturing terms and will remain so in my opinion for many years to come. Yes, some things are better made elsewhere and if you really are trying to get the lowest price, then other countries such as Vietnam or Indonesia may suit you better. However, you won’t get anywhere near the capability, diversity and opportunity that China can offer. Expect cheap? No. Expect great value? Absolutely.

2. Improve your products and find new ones

One of the benefits of working with manufacturers in China is that they are also likely to produce for other clients across the globe. Meet them, poke around their sample rooms, find new stuff and let them help you improve your own products. Be mindful of other people’s intellectual property but many great ideas aren’t protected anyway (or at least not in your home market).

3. Challenge your existing supply chain

I would not condone getting prices from suppliers when you have no intention of using them. But, if you go in with an open mind and a willingness to change supplier for the right deal it will at the very least (if handled sensitively) keep your current supplier on their toes.

4. Get control of your stuff and get what you really want

There are 2 parts to this point. Firstly, how well do you know your own products? Pretty well I would imagine. But how much knowledge rests with your suppliers? Material specifications that aren’t fully detailed in the drawings and packaging specifications that your current supplier came up with years ago perhaps? In China, nothing can go unsaid in terms of specification, so you’ll have to find out exactly what you want. This can be easier that you think and a liberating process. More knowledge of your own products is never a bad thing. Secondly, when you’ve got the specification nailed, what about changing it to what you really want, not just what your current supplier can do? Well, as we say in the North East, shy bairns get nowt. If you don’t ask, you definitely won’t get that upgrade.

5. Think globally about your business and check out China as a market

Don’t rely on email. Get on a plane and have a look around. Check out the opportunity there is for your business to sell in China. We sell graphic design services in China because there is a demand for a western look. We have this capability in house for our own needs but we wouldn’t dream of selling this in the UK as the market is far too competitive. In China however, we can get a good price for doing something we do every day.

Okay, sounds like fun? It can be but there are many risks associated with working in China. All can be managed of course, just make sure you do your homework and work with professionals. To find out more about Cottam and how our Supply Chain Management divison might be able to help you, please call us for a chat on 0191 428 2510 .

This was posted in Bdaily's Members' News section by Paul Bradbury .