PURCHASING PROCEDURE

Whether you have contacted factories in China yourself or we have sourced products for you giving as much accurate and detailed information will make all the difference to a good end product. 

1. DETAILED SPECIFICATION

   Try not to leave any detail to the assumption, even down to how you want the product packaged and shipped.
   What is the item? What are its defining points? If possible, an accompanying drawing showing details would be even better.
   What is it made of, are there any grades relevant, does something else come with it, and is there something it is not? Because it is standard to you, does not mean Factories will be as familiar with it.
   We must not go to china because we want to buy from there; we go there because of value

2. VOLUMES

   How many will you buy?
   It’s easy to say “it depends upon the price” but actually, it doesn’t.

3. Clients know how many they want or can afford, the better price will just give you a better chance of ordering or bring forward the repeat order time, and a larger second order.
   So how many are you thinking of, and what re-order frequency is probable?

4. TARGET PRICE

   Keeping expectations at a more realistic level helps us to determine if we are finding the right supplier, and also gives us the ability to refine prices appropriately without coming back with unsuitable information.

5. The quality of the product is completely dependent on how much you are willing to pay. In china factories never say ‘No’ to your target price (Unless very unrealistic).

6. QUALITY STANDARDS AND CERTIFICATION

   We only source from suppliers who can provide required documentation for product standards, and child labour is the first thing that would ensure a supplier would never be considered for our customers. Few Products exported by china requires Mandatory standards & certification from the government we will ensure to get them.  Where agreed on we have the items inspected independently before shipment, which adds to peace of mind. There is always a risk, but from experience, most issues occur where the specification is either not clear enough, or a client retrospectively introduces a technical or packing detail that they assumed everyone knows.

7. We deal with a sample and with companies having the right product, or if new, similar products. This alone makes a great difference. The sample and specification become the agreement.

8. PACKAGING AND LABELLING

   Some products have mandatory Packing Standards while importing in India. Hence, it is very important to discussing the Labelling and Packing standards.
   ·         Name and Address of Manufacturer·         Place of Manufacture·         RSP or MRP Pricing·         Instruction Manuals – Under the General Rules on Consumer Goods Use Instruction, the sale of five types of consumer goods including household electrical appliances, cosmetics, garments and textiles, toys, and furniture must be accompanied by tags and instruction manuals. The content of the instruction manuals must be factual, creditable, highly responsible to users, and true to the actual condition of the product. Concise language must be used in the instruction manual to explain the features, usage, major technical information, operation and maintenance of the product. The design of the cover of the instruction manual should be attractive, complemented with pictures and text.·         List of ingredients·         Date of manufacture and expiry date ·         Marking for GM food·         Nutrition Facts

9. ·         Added Mandatory Content
10. ·         Product standard number
11. ·         Net content
12. For Food product: 
13. ·         Other Markings
14. ·         Importer’s Name and Customer care number.
15. ·         Date of Manufacture and Best Before Date or Expiry Date

16. DELIVERY DATES

    All delivery dates and deadlines are not binding unless otherwise expressly agreed in writing, e.g. the date stated on the order confirmation or sales contract. The agreed delivery dates in written are effective only after advance payment. If no date is explicitly stated, the Products shall be delivered within the reasonable time after the Seller has notified the Buyer that the Products are ready for delivery.

17. Most of the times the delivery dates are not taken seriously in china. We must make sure if the material ordered is urgent make sure to follow up with their productions to remind them of the delivery schedules.

18.  PAYMENT TERMS

    Before we make payments to factories we first need to verify their credentials. Once we have established this and signed all relevant contracts with the factory; The usual terms are to make a 30% deposit to the factory/factories for the goods. The balance is then paid once goods have passed our quality control checks and delivered to our warehouse ready for export. Upon receipt of the goods, we will pay the remaining 70%.

19. The supplier will have to pay more attention to your requests if he has spent 70% of his sale price to buy raw materials and components when he has only received a 30% deposit from us. This also offers us leverage for any future negotiations. we shall never pay the remainder until the quality is confirmed after product inspection.