Importing From China

Wensheng Li, MBA, CPSM, CQA

Andrew Rizzo

03/04/11 1
 Agenda
• Opportunities and Challenges
• How to Get Started
• Finding Reliable Suppliers
• Strengthening the Supplier Relationship
• Minimizing risk
• Q&A

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 Opportunities & Challenges
The Success Stories
• iPhone & iPod
• Nike
• Laptops and more
The Horror Stories

• Toys with lead paint

• Unsafe tires
• Tainted pet food, toothpaste …
•
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 Getting Started
• Self assessment
– Budget
– Import volume projections
– International trade expertise
– Language skills
– Product assessment
• Get help!

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 Product Assessment

Critical Strategic
ksi R

Non-critical Leverage

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Value 5
 What Strategy to Take?
• Indirect
– Trading company/Intermediary
• Direct
– Deal with factory directly
• Hybrid

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 Direct vs. Indirect

Direct
Find substitution Partnership
ksi R

Indirect Indirect / Direct

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 Identify Suppliers
• Alibaba.com, Globalsources.com, …
• Trade shows
• Industry clusters
• Referrals & contacts
•

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 Four Types of Suppliers

Price

Foreign invested

Trading company

Domestic with int’l

experience
Domestic with
no int’l experience

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 Industry Clusters
Beijing-Tianjing Hebei Regio

Yangzi River Delta

1% vs. 18.8%

Pearl River Delta

0.4% vs. 10.2%

National Bureau of Statistics 2006

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 Evaluate Suppliers
• Past performance
• Capacity
• Time in business
• Financial factors
• Service
• Price (total cost analysis)
• International experience (CPSIA, ROHS)
•
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 Total Cost Analysis

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 Minimize Your Risk
• Develop a good supplier relationship
• Quality control

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 A Good Supplier Relationship
is an Investment in your Success
• Face to face meetings
• Top management involvement
• Timely payment
• Incentive program
• Get feedback from your supplier
• Educate your supplier
• Learn to say ‘ni hao’

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 Deal With Quality
Detailed specifications
Production sample
Packaging details
Contract

Foot on factory floor

Inline inspection
Subcontracting??
3 Party Quality Control

Inspection
Cha Bu Duo??

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 Completing The Transaction
• Freight
• Payment
• Customs clearance
•

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 Conclusion
• It’s easy to find a supplier but it takes effort
to find a good supplier.
• Do your home work and plan well.
• There is no substitution for face to face
meeting.
• Quality is ultimately buyers’ responsibility.

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 

谢
谢! Contact: Wensheng Li
www.linkedin.com/in/wenshengli

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