Huw explains very clearly some common issues to avoid when you are sourcing from China in our Cardiff Online Seller Meetup

1. Sourcing, Procurement & Logistics:
- Common problems and how to avoid them
By Huw Johnstone
GHL Sourcing presents:

2. Introduction
GHL Sourcing is an “all in one” sourcing,
procurement and logistics company who
specialize in Chinese products and
manufacturing.
Problems:
Two Categories: Assumption & Timing

3. Firstly…..
You need to know your product

4. Sourcing Problems
• How do I know this is good supplier?
• What are the signs this is good supplier?
• How do I know the quality is good?
• How do I ensure the goods are the same as the sample?
• How do I communicate with them?
• What certification is needed to import the product?
• When should I be paying for a product?
History is great predictor of the future

5. A Points Based Evaluation System

6. THE “GHL” SOURCING & PROCURMENT SYSTEM

7. Procurement Problems
• The product is faulty
• The goods won’t be ready for months
• The packaging is very poor quality
• The cartons have no markings
• The cartons are too heavy
• They have changed the product without talking to me
You must have checks and measures in place to catch mistakes

8. Procurement
The Main Steps
- Pre Production Sample
- Making sure the PO has all the correct details (most of the time this is your contract)
- Sending Payments to China
- Production Inspection
- Production Samples
- Pre Shipment Inspection
- Final Payment

9. Logistics Problems
• Its costing me more than I expected
• How should I be buying the goods? FOB, CIF, EXW?
• My goods arrived damaged?
• I seem to be paying more than expected on arrival. Why?
• What are the import cost?
• My goods have been stuck in customs for months. Why?

10. - Know your product
- Verify your factory
- Check on production and the goods before
you pay for them
- Know your purchasing terms
- Have your documents ready for import