With the epicenter of trade gradually shifting to Asia in this decade, many OEMs are now looking up to China as their first-choice destination to obtain electronic components. Despite the trade barriers imposed and their seemingly perpetual economic tug-of-war with the United States, China has emerged as a strong market for purchasing goods in the ASEAN & ANZ regions.
Understandably, manufacturers want to make use of the distinct cost advantages by buying ‘directly’ from China.
But the real question is - is it advisable to do so?
For most customers, doing direct business with China poses some imminent concerns that could cause some halts. SCI has close associations with various Chinese manufacturers and has also entered into agreements authorizing us as franchised distributors of their world-class products which gives us the strategic edge and know-how.
Read on to know what you should keep in mind before directly entering into business with our Chinese counterparts.
1. Payment Terms
When dealing directly with a manufacturer, you may have to forego several flexible terms that you can otherwise use to plan your manufacturing and inventory accordingly. If you are a customer trying to get the best payment terms, chances are that suppliers from China who you have never worked with would have their apprehensions.
Our focused inventory management solutions and extended credit terms for verified customers are a great proposition for any company planning to source components from China.
2. Warranty (procedure & complexity)
Warranty – the keyword that every OEM is after. And despite the warranty offer provided by OEMs under a cloud of conditions, wouldn’t it be great if someone simplifies it for you?
Your warranty claims are not concerned only with repairs or replacements. If you fail to effectively track warranty claims, it can stall your company’s operational, design, engineering and purchasing decisions.
After years of doing business with Chinese corporations, we have a thorough grasp of the reputation of each manufacturer and their warranty conditions. Also, knowing the complexities of getting warranty replacements, we take the lead and responsibility to ensure you are given a replacement on time to eliminate any possible bottlenecks, while we work on getting the original issue resolved.
3. Quality of Components
Yes, we did just mention about helping you with warranties, but wouldn’t it be better if we could ensure that top quality components are shipped out almost every time without fail?
Every end-product manufacturer’s reputation is built on the promise of “quality”. Their need for high-quality components ensures value-addition and your products’ longevity is more important than ever since a single failure can put you out of business in this extremely competitive world.
'Calculated risks' while utilizing electronic components in your end-products will lead to a disaster somewhere down the line.
Despite the long-standing uncertainties surrounding Chinese products, now is a good time to be buying from China. The allegations and complaints over the years have certainly rubbed off on Chinese manufacturers as they otherwise risk being left behind without much support.
SCI’s foolproof vetting system ensures that only the best of suppliers get shortlisted to our reputable sourcing list. With visits to their factories, and our own stringent quality check measures, we eliminate most quality-associated risks that you would otherwise have to face.
4. Door-to-door Shipping
What’s better than getting your products at the best rates at the quickest times? Getting them delivered to your doorstep.
Our end-to-end logistics management services ensure your products are delivered straight to your factory, thus eliminating all additional waiting period.
In a world where lead times are affecting manufacturing efficiency and production rates, direct shipping can cut down on valuable waiting time which would then give you the competitive advantage when having to deliver quality goods quickly to your end-customers.
5. Language Barriers
The most spoken language in the world is Mandarin with over 1.3 billion native speakers and China by itself has a population nearly that big. As Chinese take pride in speaking their local dialects, many a times international transactions hit a roadblock due to the communication gap. Until such time when all Chinese decide to learn English or the rest of the world learns Mandarin, we would have to make do with limited communication capabilities.
We at SCI are situated strategically at Singapore – a cultural melting point of the West and the East. Our talent pool consists of a reliable number of employees who are each proficient in all of the South-East Asian languages including Mandarin and other dialects such as Cantonese and Hokkien as well.
This effortlessly eliminates all communication barriers and positions us at an advantage which you can completely capitalize on.
6. Sourcing Network Scalability
Mass production = Optimal costs. A mass production order is very lucrative since you can leverage on the ‘economies of scale’, but one minor blip and you could be knee-deep in trouble.
When it comes to securing mass quantity of goods, it becomes critical that you purchase only after extensive investigation.
Leave the investigative duties to us, as we sieve through the haze to connect you with the right supplier to constantly deliver to your production requirements.
In a cost-driven industry, many are looking to cross-reference components from Chinese manufacturers which can be used to replace relatively costlier parts.
Our strategic location and years of experience dealing with Chinese manufacturers has transformed us into reliable “links” between the rapidly growing Chinese manufacturing industry and ever-innovating customers who crave for supply – with 0 compromise on price and quality. Rely on us to find you the best source for quality components and continue to churn out those products that keep your customers satisfied!