A reply to an inquiry about using a buyer agent to work on design and source...:
In essence every supplier will to some degree design, manufacture and ship the product. The balance is the more USA-based design the better, the better the supplier the more reliably they improve if not perfect your design.
One idea I challenge in my courses is that importing is about exploiting cheap labor. It is not, never has been, never will be, but that is something for the course. What we do exploit is cheap management. Long story, but given those premises, a USA managed source in Shanghai seems doubtful to me.
To quote their website:
"Direct Source is a western-owned and managed international trading company headquartered in Shanghai, China. Over the years DSC has developed a local team of factory auditors, QC engineers, and supply chain management specialists with the expertise and experience to enable our company to cater to the various needs of our customers around the world. As a foreign managed company with an experienced Chinese staff, DSC has the unique ability to find and deliver western-quality goods at China prices.
Unlike many agencies or trading companies you will come across, Direct Source is a licensed exporter and registered trading company with the Chinese government. Our Chinese company was founded with the mission of ensuring that each client’s requirements are met or exceeded from initial enquiry to final delivery.
Our clients range from native Chinese purchasing veterans to first-time importers. No matter your level of experience, sourcing from China will present many challenges, as well as opportunities. We help you to identify these opportunities, manage risk, minimize cost, and optimize your supply chain by removing all intermediaries and delivering you products direct from the source."
Management determines the cost of your goods, and management must cover its own costs. USA managers in Shanghai sounds about as expensive as it can get, to find suppliers they cannot be optimal, their cost of living in Shanghai cannot be optimal..
I detail how to find the best source (which I do not believe you can farm out) at http://www.johnspiers.com/NTDB.html . where you can do it yourself, and obviate the need to hire anyone.
Hope this helps...
John
1 comments:
Such a service as Direct Source may be appealing to managers working for larger corporations in which accountability (i.e., screw this up and you lose your job) is a concern.
But for a small independent importer, I think this is a waste of time. To get the goods made according to your requirements, the closer you get to the people making the goods the better.
A lot of little details can be lost in the chain of communication between you and the factory. Adding another link in that chain only introduces greater risk. So if you can get right to the factory level, that can really speed up communication and make sure all the little details are being heard AND understood.
Many mainland Chinese factories won't deal directly with customers. Too busy making and shipping goods to get into the long conversations with the overseas customer. In this case a trading company is essential.
That's the function that this Direct Source company plays. But here's the difference: you need to find a Chinese trading company that specializes in your product category. They know the manufacturers and the product and the expectations of overseas customers, and they are best positioned to handle your order.
So I wouldn't go just to any trading company but always seek out the trading companies that are specialists in your area. THEN I would talk to them at great length and pick the company that communicates the best.
Chinese tend to be short-form communicators but every once in awhile you'll find someone at a trading company who can respond to your 4-page email point by point. Such a person is worth their weight in gold and you should pick that person to work with for the long haul.
That's how I pick my trading partners -- always based on their ability to communicate in great detail and at great length. Because it is about building a long-term relationship that will make both your job and their job easier as time goes by.
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