Sourcing from China

1. Why source from China?

China’s entry into the World Trade Organization has signaled it’s willingness to assume a more important international economic role. There are a number of factors which enable Chinese manufacturers to produce high quality products , some of the main ones are:

• Lower cost of production.
• Economy of scale.
• Logistics, transportation and facilities at lower rates.

2. Why use our services?

Extensive experience in dealing with Chinese manufacturers means that we avoid the pitfalls and provide the security you need to successfully gain access to the massive cost savings available.

We provide you with personnel on the ground in China who can determine the legitimacy of a manufacturer and provide quality control BEFORE the products are shipped.

3. What makes us unique?

- Independent – We’re not tied to any suppliers.
- Transparent – Both in how we operate and the suppliers we source for you.

4. How does your service work?

The process is simple:

• Firstly we search for a product that meets your requirements. In the case of production outsourcing, we will negotiate with the factory for the production of a product that meets your specifications.
• Samples are obtained and delivered for your inspection.
• Prices and terms are negotiated
• We carry out quality control, and, depending on your needs, inspect products prior to acceptance.
• The products are shipped via an appropriate method, customs clearance performed and the products delivered.

5. What products can you source?

Most things! China is the manufacturing hub of the world. If you can dream it, we can probably source it.

6. What about product quality?

No matter what or where you manufacture, there will be risks. JFR's role is to minimize these risks, using our rigid systems. We thoroughly research manufacturers, and use many other safeguards throughout the procurement process to ensure you receive exactly what you expect.

7. How do you work with clients?

Virtually all client relationships begin with feasibility assessment through a 30-45 minute phone or in person consultation, which is obligation free and at no charge.

The purpose of this exploratory session is to find out more about your needs, explain what we deliver, and what your investment in us would be.

If you’ve already calculated feasibility, or are already dealing with China, we’ll explore whether JFR can add value to your project. At the conclusion of this process, one of two things happen:

   1. Work is agreed to – typically a 2 – 3 week “pilot” consulting engagement with agreed deliverables, and the option to continue.

   2. You have everything you need for the time being.

We will only agree to embark on a consulting engagement if we believe we can add substantial value to your business.

Either way, you’ll walk away with valuable ideas for dealing with China.

8. How are your fees determined?

For product sourcing, we charge on a fee-for-service basis, plus small supplier management fee based on the cost of goods. We believe our unique ‘Pay As You Go’ fee model represents the best value way to deal directly with Chinese factories, whilst reducing the risks involved.

9. Do you take a commission from the supplier?

No. Doing so would reduce our ability to demand changes, refunds or lead time reductions. One of the things that makes JFR unique is our independence. It's standard for secret commissions to be built into the quoted price in China, so when we inform manufacturers don’t accept payments, they think we're joking! However, our business model and fee structure are designed to maintain our independence as your purchasing representative, working solely for your interests.

10. I found a Chinese agent that will source products for 5% commission. Why shouldn’t I just use them?

On the internet, you can find agents who will source your products for a commission of around 5%. However, these agents also receive a commission from the manufacturer or trading company who supplies your products, and to cover this cost the manufacturer or trading company build in their commission into the offer price for the goods. The result is the commission paid by you to the agent can be anywhere from at least 12% to 100% and not 5%... you can never be 100% sure. As most agents are profit driven, they may refer your business to the supplier with the cheapest price, resulting in substandard product, or to the supplier which offers them the highest commission (which isn’t necessarily the one with the most suitable product for you!).

11. What is the lead time on production?

Lead time for production of products is approximately 4 - 8 weeks if the product is not already in stock. When we get product details from you, we’ll provide more accurate estimate of time frames.

12. What delivery methods are available?

The most appropriate method of delivery will be determined according to the urgency of delivery, cost and weight of the products being sourced. These include air freight for lower weight, or urgently required products. Delivery can occur within one week. For heavier products or larger orders, we generally use sea freight. Delivery in this case is usually approximately 4 weeks.

13. How are payments made?

Payment for goods is usually directly paid to the supplier through a Letter of Credit, or, if you prefer, we can arrange it through JFR on an electronic transfer.

14. I’m considering a trip to China. Where do I start?

From our experience it works best to initially have us research the item, tender it out, and shortlist potential suppliers. Then you can make an informed decision as to whether a trip is required. If a trip would be beneficial, we can arrange everything, including a trade assistant and factory visits to gain maximum value from the trip.