Week Two HK GS Sourcing Show Questions, Oct 20

More questions from the New Buyers Seminar at the Global Sources Sourcing Show in Hong Kong.1. Q: How do I get samples that are packaged correctly before the line work is done (or just by air at anytime)?A: Specify your packaging needs.  Packaging for air and sea freight are most likely significantly different—at least they should be.  Shipping by air does not usually give you the packaging that you need to compensate for not having a container to protect things.  To compensate, you need to specify additional exterior packaging for all items going by air.  Remember, the rule for any product or packaging specifications: If you can’t or didn’t write it down, don’t expected it to show up correctly.2. Q: How do I choose a 3PQ? A: First, you first find someone that has an office in the same general area as your supplier or your costs will be more expensive.  This shouldn’t be a problem as must of the big (and many other mid-sized) 3PQ companies have offices all over Asia.  Second, you need to find a service provider that has experience in the general product area that you are working in.  They may not have experience with the specific product you are buying/manufacturing, but if they have experience in the general product area you can work with them.  Which brings us to step three, work with your 3PQ to create a QC program that is specific to your product, market and personal standards—remember you are paying them to represent you, so be specific with what you expect.  Fourth, confirm that your supplier has the licenses and certifications that they need to do business in China an in your product area.3. Q: How can I afford to have a 3PQ come in and check the production 3-5 times (or more) if I’m a small business just starting out with production in China?A: First, the real question should be this: How can you afford to have crappy product show up at your home country with full payment completed and no recourse for sending it back to or getting it replaced by your Chinese supplier?Second, the rule we see is about $1000 direct investment into QC for every $10K of product you plan to ship.  This means that at about $300 per day (QC fee plus expenses) you get 3 QC days per $10K.  That would be about right—one to two days of in-line QC, one day of finished packaging QC and a day of loading/container confirmation.  For a larger qtty order, you need more days of in-line and final QC just to get the same level of assurance.Third, I understand the intent of the question—“Wow!  QC be expensive, I wasn’t planning on spending that much.  I’m a small business and I was coming to China direct to save money, not spend more.  What can I do?!”  My experience in China tells me you have three options, you can pay for 3PQ to do it for you, like I just detailed, you can fly back and forth to China and do it your self or you can not do any QC and just roll the dice with quality.  There is really no other option.Even if you are buying on a strict budget, spending the $600 to get at least two days (one in-line, one final) of QC should just be mandatory.  There is a reason why going direct is cheaper—you’re cutting out all the middle men.  And while some of them are just adding costs and not much service, some of the people you are eliminating are providing real services—QC and logistics, for example—that you now absolutely must pay for yourself.If you are not going to do QC you might as well be going to Macao instead of buying product.  I’m sure your odds are at least as good.