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Everyone Doing China Sourcing Is Stupid -- NOT

Posted by Dan on July 30, 2007 at 11:02 AM

In an article entitled, "Is sourcing in China worth it? Businesses weigh the costs and benefits, in the wake of product recalls and bans," CNNmoney.com tells us that companies are now doing a cost benefit analysis before just up and having all of their goods made in China. As my ten year old would say, "duh...like tell me something I don't know."

To make a long story short, the article says there are risks to outsourcing to China and the way to minimize those risks is to conduct due diligence on your supplier and/or to get qualified assistance from those who know China.

My favorite line in is the following:

Suddenly, outsourcing to China-standard procedure for thousands of entrepreneurs-looks a lot more complicated. Now businesses must factor in the true cost of obtaining their products at the world-beating "China price."

Did anyone out there ever found outsourcing to China anything other than complicated? Did anyone deliberately not factor in the "true cost" of obtaining their products from China?

Comments

It's pretty obvious not everyone doing sourcing in China is stupid.

However, it should also be obvious that things go wrong a lot more than most of us expect - even after years of being here. At least, that's my impression.

To answer your question: YES and I have made tons of money. My secret of success is not to do any due diligence AT ALL, in fact the more you do it the more likely you will get scammed. I mean, JUST DO IT. Go to alibaba.com pick seven or ten suppliers, doesnt matter which and send 30% advance to each. Because the price is so low, statistically you will succeed and still make a profit.

What about quality check, Jonathan?

There would be a reason for people who outsourcing to China.While China will fight on the anti-dumping claims, it will also continue to review and revise its own trade structure to improve its trade balance (and international relations)
I belive that it's very hard for consumers to forswear Chinese imports because of the low price. There is no harm in the trade of China & US.On the contrary, the trade of the two countries can strengthen their mutual supplement with the advantages of each.
If some problems were found in trade, so the importance is to solves the problem, but not discontinue the trade, perhaps such desistance might causes more problems, such as mentioned in the article.
AmeriChinaB2B is one of the professional B2B trade marketplaces to facilitate online trades between exporters and importers from America and China.Welcome to AmeriChinaB2B( http://www.acb2b.com/ ) to begin your business trip of China.

There would be a reason for people who outsourcing to China.While China will fight on the anti-dumping claims, it will also continue to review and revise its own trade structure to improve its trade balance (and international relations)
I belive that it's very hard for consumers to forswear Chinese imports because of the low price. There is no harm in the trade of China & US.On the contrary, the trade of the two countries can strengthen their mutual supplement with the advantages of each.
If some problems were found in trade, so the importance is to solves the problem, but not discontinue the trade, perhaps such desistance might causes more problems, such as mentioned in the article.
AmeriChinaB2B is one of the professional B2B trade marketplaces to facilitate online trades between exporters and importers from America and China.Welcome to AmeriChinaB2B to begin your business trip of China.

Jeremy --

Agreed.

With due dilligence for many things outsourcing to China does in fact make sense. The issue is due dilligence is a difficult task to accomplish without experience doing business in and with the country and its manufacturers.

A lot of people may be confused or delighted by the plentiful arrays of offers suiting their requirements at sites like alibaba.com, but buying in China for newcomers really requires a professional sourcing company or agent to get things started; at least to teach the client company the process of supplier selection, production monitoring, negotiations, and logistics before they launch into starting an office or a routine of dealing with one or more manufacturers directly.

Kevin,
www.cf-asia.com

Taking America Back

The recent uncovering of the Chinese lead paint, the defective tires, the poisoned pet foods, and the toothpastes tainted with anti-freeze, are only the slightest tip of the iceberg of the damage China is causing inside the United States.
The Chinese penetration of the US manufacturing base over the last decade with its cheaply manufactured goods is now a national security threat.
The US military, once the strongest in the world, backed by our machine shops, our fabrication shops, and our broad industrial base is eroding at a rapid rate, while the Chinese strengthen their military and industrial base at US expense.
Finally there is some good news to report on this front.
A few years ago in Wisconsin, one of the country’s brightest industrial minds put together a group of companies, each with specific core competencies in areas such as large boring bar work, production CNC machining, stampings, tool making, and screw machine work to name a few, to turn things around.
These companies offered better than the norm pricing in their areas of specialization and were brought to market in Wisconsin and Illinois.
Since that time hundreds of companies have purchased from this group and have had their costs reduced on domestically purchased commodities.
This is the first and greatest positive response to the communist attack on our manufacturing base.
With a heightened sense of awareness throughout the US manufacturing sector, more companies will discover less expensive domestic suppliers for their own purchased goods and become less dependent on the growing Chinese military-industrial base, which has now become a very real and serious threat to the United States economy.
http://www.chinasupport.net/news83.htm

Under U.S. law, products of forced labor should never make their way to the American shores. Since 1983, it has been illegal to import goods made by forced labor into the United States.

http://commdocs.house.gov/committees/intlrel/hfa45502.000/hfa45502_0.HTM

http://atimes.com/atimes/China/HJ19Ad01.html

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