Working with suppliers in China requires a clear understanding of the questions to ask to achieve the desired results. The following top 10 questions are useful in improving supplier relationships and gaining a better understanding of the market.
1. Building Relationships & Trust
When asking these questions, it is crucial to build trust and rapport with the supplier before inquiring. The timing depends on the relationship established with the supplier and can be done through email, WeChat, in person, at the Canton Fair, or directly in the factory.
2. Are you a trading company or factory?
This question helps to determine the strengths and weaknesses of the supplier. Trading companies offer a wider range of products, can source from multiple factories, and handle logistics and paperwork, making them a convenient choice. On the other hand, factories may specialize in a particular product line, offer lower prices, and be more flexible in customizing products.
3. Where is your factory located?
Knowing the factory and office location, as well as the shipping port, helps in consolidating orders to reduce shipping costs. The factory location may also reflect the available labor and materials, impacting product quality.
China suppliers
4. How many workers do you have?
The number of workers provides an insight into the supplier’s capacity and factory size. A larger factory may be better equipped for large orders, while a smaller factory may offer quicker turnaround times. The number of workers may also indicate the level of automation used in production.
5. Which markets and countries do you supply?
This question reveals the factory’s focus and the quality standards they follow for different markets. Understanding their expertise and experience in different environments helps in determining if they meet your requirements.
6.Which brands do you supply and who is your biggest customer?
The supplier’s experience with well-known brands and their biggest customer provide information about their quality and capacity to handle large orders.
7. Have you supplied retailers or department stores?
Supplying large retailers like Walmart indicates the supplier’s ability to supply large quantities and experience in cost-effective product engineering. This may also show their experience in meeting complex requirements and standards.
8. What is your MOQ?
The minimum order quantity (MOQ) helps determine if the supplier can accommodate your order size and affects cost per unit. It is important to consider MOQ when negotiating pricing.
9. What is your lead time?
The lead time is the duration it takes for the supplier to fulfill your order. Understanding the lead time is essential to ensure it fits your business timeline and to avoid delays. Some suppliers may have longer lead times but better prices, while others may have shorter lead times at a higher cost.
10. What is your payment term?
The payment term covers the agreed conditions for paying the supplier, including payment time, method, and penalties for late payment. Understanding the payment term ensures it aligns with your business needs.
