Choosing the right supplier

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Choosing a supplier is a process that takes time, and for a good reason. It is important to find a factory that can deliver the product you need while meeting your quality requirements, and no less importantly – at your target price.
The most convenient platform for finding suppliers today is Alibaba, which has evolved over the years into a world-class company, the leader in the e-commerce sector.
The site’s home page has a default search tab by product, but it can be changed to supplier search. The first option mentioned is for those interested in purchasing an ODM product – a product that the factory specializes in manufacturing entirety and it will only change it’s branding according to the buyer. The suppliers’ search option is suitable for those who wish to make changes to an existing product or to create a new product, as well as those who seek to import certain materials according to the different types of industries.
While searching, it is important to note that a particular product can have different names in the professional language of the factories. You may want to try searching in a number of different ways to fine-tune your search words and find suppliers who specialize in your product.
For the demonstration we looked for plastic wall plugs. After clicking on the search button, there is an option on the top right side of the screen to narrow the search results by country. since we are importing from China, we will mark China to focus on it. Now we’ll explain a few things about filtering the relevant suppliers out of the variety offered. Choosing a factory that you cannot physically reach can lead to many problems – starting with working with an agent and not a supplier (which can make the process expensive and complicated) and ending with the supplier’s inability to produce your product or an unresponsive supplier that already received the payment.
In order to avoid these problems, we have compiled guidelines for safely choosing a supplier:

  • Look for Gold suppliers: these gold suppliers pay a commission to Alibaba. When you are looking for a product at Alibaba, you will see the gold suppliers at the top of the search results. In order to maintain a certain quality standard, Alibaba examines these suppliers and verifies the details provided by the suppliers.

 

  • Make sure the details are verified: even if you’re not looking at a gold supplier, in the supplier’s home page, you can see if the details this supplier provides were verified. Make sure that the location, business type, and establishment year are verified by Alibaba. If they are, you can believe this supplier is reliable and probably won’t disappear after receiving the payment.

 

  • Check the supplier’s website: it contains essential information such as the proximity of the plant to the port (proximity to port means cheaper shipping costs), or other products manufactured by the supplier. Look for a product similar to the one you would like to import and if you find it, it’s a good sign that the factory is practiced in manufacturing this type of products and probably can do it well. Also note the number of years the supplier has been active, preferring suppliers with more years of activity and experience. Look for pictures of the factory to see if it is organized, whether the working stands seem professional, etc.

 

  • Check the response rate: the response rate of the suppliers is very important and should be above 70%. If suppliers respond at less than 70%, their business is probably not their top priority, and they are not serious enough. Be cautious about working with these suppliers.

 

  • Perform a factory audit: this is a standard inspection usually offered by third party companies and carried out before starting to work with a new supplier. This helps to show the factory you are serious about your business and maintains a certain tension level at the factory, to guarantee a professional work on their behalf.
    During factory audit, the third company verifies the information provided by the factory, documents working protocols, business cards of real contacts, it checks the production capabilities of the plant and more… Many quality assurance companies offer inspections to check the factory workers’ satisfaction with working conditions, or the environmental impact of production at the plant.

Before you move on to the next step that’s ordering samples, it’s best if you send quotation requests to several suppliers you reviewed by the guidelines mentioned above. It is very important that the quotation request will be detailed. Specifying exactly what you want ensures that the suppliers will understand you, show them that you’re serious, and that you’ll receive relevant offers. Specify the color of the product, the materials it’s made of, and (if you have it) it is very important to attach a picture or sketch.
If you still feel a little green and prefer to be on the safe side since this is the first product you import, you can always use the services of a sourcing company that will handle the process of searching the factory, managing the contract and the other required conduct.

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