The Four Essentials For Sourcing From China.

Dan Harris says:

Got an email the other day from a friend whose company is getting ready to source from China. The email asked me what the company needed to know "to protect their butts in China." I told them they needed to know/do the following four things.

1.  Choose a good factory. This is the sine quo non of China sourcing. I am always saying that I can write the world's best contract, but if the party on the other side is a thief, the contract will have no value. How do you pick a good factory? The first thing you do is make sure that you have actually picked a factory, and not a broker claiming to be a factory. The best way to pick a good factory is to go and look at it yourself. The second best way is to have a qualified person you trust go and look at it. The third best way is to rely on the views of others.

Read more here:

http://www.chinalawblog.com/2011/04/the_four_essentials_for_sourcing_from_china.html

 

Comments

[John Simple]

One of the interesting challenges recently is factories in China falling over. This causes and issue with people who have tools with those factories using them for example for injection moldings. Some tools cost in the range of $100K usd.
One of the ways around is to have your agent to deliver the tools to factory for production run and take them back to storage after completion of the run.

John
www.pa-international.com.au