Sourcing from China: A low cost and more transparent solution
Introduction of Sourcing services from CHINA LONGSUIT
A. What China LONGSUIT offer:
1. Product Study:
Our experienced purchasers will first study the specification of your products and communicate with you in details.
2. Pre-selection of the suppliers:
We will target several factories which could produce your products. After comparing their producing capacity, experience, price, etc, our experienced team could help you to pre-select the one with best price, quality and service.
3. Factory Assessment & Audit:
by contacting or visiting the selected factory, we can give you a brief audit report stating factories’ basic information: background, equipment and facilities, turnover of last year, quality control procedures…etc
4. Price Negotiation in RMB directly from factory:
a. Due to the revaluation of RMB and depreciation of USD, factories change their price in USD very frequently, sometimes during 1-2 months, the USD price changes. This is a headache now for many foreign customers.
b. Authorized by Chinese government, LONGSUIT is a MDE (Mainland Designated Enterprise) to receive payment in RMB. In China, NOT every supplier can be a MDE.
c. If you could pay RMB from your country, we can quote you price in RMB directly from factory, which will help you to keep your price more stable and transparent. If you could NOT pay in RMB, we also can quote you in RMB for you to know RMB price of the factory,
Then you could revert it into USD or other currency according to the exchange rate.
5. Sample checking
6. Supplier Contract Management
Study contract details for molding price, product price, packing, delivery time, payment terms, customer brand & Intellectual Property Protection, etc
7. Supply Chain Optimized
You may have different goods from different cities in China. We could help to optimize the delivery time by grouping those goods in one shipment for saving your cost.
8. Pre-shipment Inspection:
Onsite inspection is a very important way to make sure you get the right goods according to your requirements. We could go for inspection under your instruction.
9. Translation and Travel accompany
10. Dispute Coordination Concerning the contract
As you are far away from the suppliers in China, to settle a dispute about the contract is not an easy job. We could help to solve the dispute with mutual benefit. Our advantage is our know-how of settling disputes peacefully and fairly.
11. Other Services:
We also can help you to set up representative offices or factories here in China. For detail, please see Projects Finished below.
B. Service Charge
1. Upon signing of sourcing contract, we ask 500USD to 1000USD per month for the pre-selection and assessment of potential suppliers before a confirmed order has been passed. Exact amount will depend on the working load for sourcing your products and the quantities of products which needed to be sourced
This fix charge will end up at the month you place your first order.
2. A 3% commission will be charged based on the amount of each order.
3. The fix charge which you have paid before you place an order will be deducted from the commission based on the order. Each deduction should be no more than 20% of the commission amount.
4. Following cost will NOT be included:
a. Travelling cost related to visit for purpose of audit to the factories. Normally an extra 150-200USD/day is needed for this travel.
b. Cost of inspection. An extra inspection service fee is 200USD/day. Not including the hotel and travelling tickets.
c. Cost of sending samples.
d. Other extra cost that occurs.
C. Projects finished:
1. Sourcing for an enterprise in France. The products of this company is mainly in Shop Fitting items. Initially, they made all their sourcing and packing in Europe. As the competition became serious and their prices were too high, they risked losing some of their market share.
We helped them begin sourcing in China since 2004 for about 12 series of products, around 200 different models from 15 factories all over the China.
After more than 2 years of collaboration with us, their prices became very competitive in their market, for their distributors and end users. Our contract with this company began in 2004.
2. Sourcing for an enterprise in Germany:
This company has a history more than 60 years. They have well-known tool brand in Germany and they have many distributors all over German.
They contracted with LONGSUIT to help them develop new range of products.
Our contract with this company began in 2007.
3. Sourcing for an enterprise in France. This company, whose main line is hobby tools, also made all their sourcing and packing in Europe before. This company does not have any personnel responsible for the purchasing in China.
Their order is very small, in which the Chinese factories is not interested.
We delivered their small order to Chinese factories, because we already have had long term cooperation with them. With our professional employees, checking samples, requesting for prototypes, analysing technical data of the products become easy job for the suppliers. Now they cooperate very well with several Chinese factories. Our contract with this company began in 2005.
4. Sourcing for an enterprise in France. This company, whose main business is in Ventilation system and accessories, has already a department of purchasing with 10 persons contacting the Chinese factories. Nevertheless, the distance and language barriers make it hard to communicate smoothly with Chinese suppliers.
They demand us to help them in the daily job based on a long-term contract.
They are currently looking for new possibilities to develop in China with our consulting. Our contract with this company began in 2006.
5. Analyzing the market for an Enterprise in CHARENTE-MARITIME, France. In 2004, within 3 months, we gave them a report of Chinese market, which included the study of other competitors worldwide who already entered in China, competitors’ market share, advantages and disadvantages of newly entered potential Chinese collaborators, etc.
In 2005, We helped them set up a representative office in Shanghai and found a production base (Chinese Factory) for them to produce, assembly and sell their products locally to Chinese users.
Our contract with this company began in 2004.
6. Consulting for a big Enterprise in SAVOIE, France.
In 2005, We help them to establish a representative office in Shanghai.
In 2007, we help them to establish a wholly owned foreign enterprise(WOFE) in an industrial zone of Shanghai.
Our contract with this company began in 2005.
Conclusions: Considering us as your partner, our offices are as your extended offices in China, our experience and business networks are going to bring you more opportunities and efficiency in working with Chinese government suppliers.