Choosing a Manufacturer

Choosing a Manufacturer

Choosing a Manufacturer

China’s economic boom has been 30 years in the making. A part of this economic growth lies in the numerous foundries that lie within the country’s borders. Traditionally, the relative cost of manufacturing at an overseas foundry has been significantly lower than producing OEM alloy metal components in other, more developed, countries. With cost-effective production in mind, it is no surprise that small U.S. companies are flocking to manufacturing sites in China.

It’s Complicated

Purchasing manufactured goods from a Chinese or other foreign foundry is a good tactic for U.S. businesses that are interested in implementing cost-effective measures, but it the process is complicated. Without guidance, you could find yourself in trouble. While you should avoid buying directly from suppliers, it never hurts to use the tools available to educate yourself on the complex task of finding a good manufacturer. There are three main sources that can be used to research reliable Chinese suppliers: targeted Internet searches, LinkedIn and trade shows.

1. Targeted Internet Searches

Using Bing, Google, or business-to-business sourcing platforms, such as Global Sources or Alibaba, you can begin preliminary research on the top manufacturing suppliers. Thousands of suppliers are listed on these sites; thus, you will need to filter results by looking for entries that have been labeled as “gold member” or “verified supplier.” Keep in mind that these sources should be used for research purposes only. Buying from China without being able to verify the quality of the source can be a serious risk. A sourcing service provider can help to mitigate this risk, a point we will be discussing further along in this post.

2. Using LinkedIn

Using LinkedIn to research and identify suppliers is not an ideal solution; however, it can provide you with some valuable insights. LinkedIn can be a good source for reviews or feedback on potential top quality suppliers. After reviewing LinkedIn profiles, you will need to do a bit of due diligence to ensure that the information provided is verified by multiple sources. It is also important to remember that some governments such as the Chinese government has strict social media regulations; thus, LinkedIn other social platforms should only be one aspect of your research.

3. Trade Shows

Trade shows offer small businesses the unique opportunity to find and speak with legitimate suppliers. At a trade show, you can learn more about suppliers, discuss their products, understand their production capabilities, and learn more about their quality-control procedures. However, attending a trade show can easily become an expensive endeavor as the casting manufacturing industry is truly a global market. To lessen this expense, it is much easier to hire a company, such as Alloy Products Distribution, that has worked directly with overseas manufacturers and has already accumulated copious amounts of research and industry specific knowledge.

Avoid Buying Directly from Suppliers

If you have spent the time identifying and vetting potential suppliers, then you might try to save a few extra dollars by buying products directly from your chosen foundry manufacturer. While buying directly does have the potential to save you money, it is a very risky business. You are at risk for being scammed, not getting your money back if the products don’t meet your specifications, receiving low-quality products and not to mention experiencing shipment or various customs delays.

Buying directly from the supplier also poses a potential payment issue. High-risk payment options include using a credit card or a wire transfer. If you are lucky, a manufacturer will let you make a lower-risk payment via a bank letter of credit that is issued by your U.S. bank. However, when paying the supplier directly, you are always entering into a high-risk environment should a dispute arise. With these factors in mind, we recommend buying overseas manufactured goods through a quality sourced and vetted manufacturing partner such as, Alloy Products Distribution, a manufacturing service provider of OEM components and goods from Taiwan and China.

Why U.S. Companies Should Work With Sourcing Service Providers

Ultimately, sourcing service providers cut out all the complications by handling the entire manufacturing process from beginning to end. From researching, identifying and verifying suppliers to price negotiations and supply management, a sourcing provider will help you to find the highest-quality and most cost-effective manufacturing suppliers.

Alloy Products Distribution is proud to be a sourcing service provider with more than 20 years of Chinese other overseas manufacturing experience. If you are looking for a chance to capitalize on the low cost of Chinese manufactured goods, look no further than a trusted sourcing service provider.