Sourcing Products From China

The phenomenon of Low Cost Country (LCC) sourcing is embraced in varying degrees by foreign manufacturers, yet those that achieve success are invariably the ones that embrace this phenomenon with a long term view in mind instead of only seeking short term cost gains. This is where sourcing becomes strategic.

Beijing Avenue employs a systematic approach starting from needs analysis, followed by thorough and deep supply market research, strict selection and due diligence on potential suppliers, and strategic engagement, negotiation and contract formulation. In this way we assist our clients to select the best suppliers and best products by utilising a long-term and strategic approach.  

China Sourcing Competitive Analysis 

Beijing Avenue assists companies with analysing and then recommending and formulating a China agenda with regard to their global procurement programme. In order to assist our clients in making a decision on whether to source from China, as well as what and how to source from China, we conduct research and analysis on both the macro situation (such as government policy / regulation, current and future industry dynamics, competitive landscape etc.), as well as the micro situation (such as price competitiveness and specific supplier due diligence including product quality, company reputation, supply capacity and other relevant issues). 

By combining the above research and analysis with the client's business plan, overall strategy, aims & objectives and specific procurement needs, we are able to provide a holistic solution that creates value and mitigates all associated risks as effectively as possible. 

Supplier Identification, Evaluation and Selection 

Selecting the right supplier is always a crucial decision - this directly impacts the total cost of ownership, quality and product lead time as well as the overall risk of your sourcing strategy. Beijing Avenue follows an entrenched and established methodology when choosing the right supplier that can supply the right product at the right price and at the desired quality level. 

An initial potential supplier universe list is created by conducting a comprehensive and systematic industry search – at this stage, Beijing Avenue will employ on-the-ground research as well as leverage its established networks to ensure that all the possible suppliers are included for evaluation. High-level supplier filtering is then conducted based on a range of determinants developed by Beijing Avenue with input by the client. 

Further and more specific filtering is then conducted, including directly comparing different suppliers, RFI, RFP, RFQ, so that a final list of appropriate suppliers is arrived at. Supplier site visits are generally also recommended, both at the filtering stage as well as the final selection stage in order for the client to develop a better understanding of China and Chinese suppliers as well as to assist with the preparation of the contracting stage. 

Supplier Engagement Support 

Engaging and interacting with Chinese suppliers can be a difficult part of sourcing from China. This is due to various obstacles and constraints, such as language, business culture and distance (time zones as well as pure distance). 

Leveraging Beijing Avenue’s dedicated on-the-ground team in Beijing, China, provides assistance to our clients with all the procedures of engaging with suppliers, including RFI/RFP/RFQ, tendering process, sampling and tooling to ensure that the information and documents are collected in order and on time and that the product specifications are understood and adhered to in every respect and detail. 

Commercial Contracting Support 

Beijing Avenue provides support and advice to its clients on conducting the contracting process, including negotiation on both price as well as all commercial terms, which covers contract drafting, contract inspection and signing process arrangement. Beijing Avenue is able to provide solid negotiation support based on our past experiences as well as our detailed understanding of the related industry. 

Beijing Avenue can also assist in the drafting, inspecting and modifying of contracts (under clients' authorisation), and has entrenched relationships with a number of international and local law firms that are able to provide professional advice when and if required.