
Sino Strategic's Research / Producer Identification Process
(AKA Factory Selection Process) is both rigorous and methodical. We find it's this attention to detail at this early stage that really pays off in the long run - in terms of consistent product quality, on-time delivery and cost-effective production:
Clear communication of information in this phase is very important. The more we understand your needs and timetables, the more we can help you.
Initial details we seek from our clients
The following five variables can have a dramatic impact on the success or otherwise of a sourcing project.
| Expected volume | Are you looking for 500 or 50 million units? This can make a huge difference in terms of economies of scale and factory selection criteria. |
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| Type of product | Is it a commodity or a bespoke product? Existing producers of similar products can often turn out your orders for a fraction of the cost of a factory that's learning the business at your expense. | ||||
| Materials made from | China supply of raw materials often varies wildly. Some materials that are commonplace in the west are only available as expensive imports in China. | ||||
| Target price | Your intended sourcing cost benchmark. We can tell you if it's optimistic or pessimistic. | ||||
| Current price | What do we have to meet/beat? |
Beyond these basic parameters, we also explore your more detailed sourcing objectives with you. What is your business is trying to achieve? Is it achievable or perhaps even exceedable?
Although we do not expect all our projects to go into production, more than 80% of the projects we source go ahead successfully and full production is shipped.
Of those orders produced, more than 95% of our projects generate re-orders. A "one-off" is rarely truly profitable for any of the parties concerned.
Our selection method
We audit all factories before beginning production. If we
are quoting on a new product or product area, we contact 20-30 factories, communicate and discuss project details with them and begin eliminating them based on our experience dealing with Chinese manufacturing.
We will negotiate prices with 5-7 factories that have quoted on products and generally visit 3-5 factories before picking the most suitable trustworthy one.
Quote offer sheet to client.
After going through all these factories we will present you with an offer sheet. During the whole process we will stay in touch with you and make sure we are on the right track.
Information about designs, materials, photos of products and prices will be communicated back and forth to make sure we waste no time.