Source: ezinearticles.com
Humble beginnings
During the last decade globalization has opened the flood gates of foreign trading and the backwash has run into the crevices of even the smallest companies. Where once only large organisations could deal effectively with far away suppliers now even the most modest of traders can source supply from foreign producers.
My experience of foreign trade began in the summer of 2003 when I worked for a small importers of wooden toys and games including chess sets. I became the companies primary contact with suppliers, all of whom were based in China. Because the company was so small (turn over well under £1m) staff numbers were thin on the ground. This meant my role was very varied, I would deal with packaging, product design, quality control and general negotiations with suppliers.
After a fairly short time in the role I quickly realized that things were, quality control, going wrong, very wrong. Products were incorrect, quality was poor, &control of quality completely non existent! My discussions with the mildly competent sales department taught me that half of what they were selling were partially defective clearance lines. In fact the company was running in a highly inefficient way. External factors such as a very strong, quality control, pound, a booming economy and extremely low labour costs in China were the only things stopping the company from going bust. Indeed once these factors switched to less favorable ones they did go into administration.
What surprised me most about this slowly sinking ship was how face to face interaction with their suppliers was virtually non existent. In fact the only contact they had with their suppliers was via email. They were getting container loads of stock, quality control, sent over to the UK not knowing if the contents, quality control, was going, quality control, to be sale-able or destined for the bonfire. I was unable to effect many changes within, quality control, the company due to the belligerent and stubborn owners so after twelve months I left to set up my own business importing chess sets and other goods from China.
A new start
Initially things looked, quality control, very Rosy, the economy was still, quality control, in boom mode, the pound strong and on line demand for these products high. Using these advantages, quality control, I managed to build a small yet profitable business importing products from China and retailing them on line through various e-commerce platforms. I was dealing with two Chinese suppliers, both of, quality control, who were contacts from, quality control, my days at the ailing toy importers.
It's fair to say that had I been a total stranger these suppliers would not have started to deal with me, they were too big to want to deal with a small start up. Because they knew me and the, quality control, way I worked both were keen to help me build my fledgling company. MOQ's were low and prices good, things were looking up.
And so the pitfalls came
Things started to go wrong when the quality of the products began to suffer. Batches of perfectly good products would arrive in containers,, quality control, followed by repeat orders that were riddled with defects. While I sat down and worked out the cost to my company of these mistakes the Chinese searched for pathetic excuses and reasons why they were not going to refund me.
I quickly realized that the only way I was going to sort out these issues was to get myself over to China, meet the suppliers in person and see with my own eyes how my products were being made. I booked my flight and told the suppliers I was coming. I was keen to show them that I meant business and that if we could work through these issues together business would flourish.
It's worth remembering that capitalism, quality control, and business is fairly new to countries, quality control, like China. Our sense of business in the developed side of the globe is a far cry from their rapidly developing business world. It's these differences that cause so many problems between Chinese and English companies.
It became clear to me that the Chinese were unable to see past the current deal they were working on. So obsessed with making a profit on every single order they would sooner murder their children than break the rule of capitalism and make a loss. In the developed world things have evolved a lot more. We know that sometimes you need to take a loss today in order to facilitate a profit tomorrow and beyond. We have all been there:Making, quality control, a costly concession for a customer to rectify a bad situation in the knowledge that the reputation these actions will bring is worth 1000 times what we spend to keep them happy.
During my dealings with the Chinese I would visit the suppliers around, quality control, four times each year. I would inspect my products, ensure they fixed mistakes in production and suggest positive ways they could make their lives easier. Some people have suggested that everything that's ever been invented in the world started it's beginnings in a garden shed in England. It seems the, quality control, English have an in built sense of practicality, innovation and ideas. Of course without the rest of the world to help us these great, quality control, ideas would probably all still be in the shed but it's worth remembering that people from other cultures can sometimes lack what we would call 'common sense'
Take nothing for granted when sourcing your products from suppliers abroad. If a box says 'This Way Up' don't ever assume the supplier will rotate it the right way. If you simply assume they will use common sense to get it right expect nothing more, quality control, than a shrug of the shoulders from the suppliers while you pull our your hair after it's all gone wrong!
Lessons learned, time to move on
These days I don't buy anything from China, India became the source of many of our fine chess set products after a conscious decision was taken to move away from mass produced goods into higher end crafted products. The lessons learned from the China experience have enabled me to deal effectively, quality control, with the Indians and avoid the pitfalls I previously faced with China.
Which ever country you are dealing with the same principles, quality control, apply. By far and away the best method of dealing with your supplier is face to face. It shows the supplier you are serious, that you mean business and that you are in it for the long haul. Meeting, quality control, the supplier, quality control, in person can be a reassurance that you are not dealing with an Internet scamster selling someone else's rejects, or it can be the meeting you needed to realize they are not worth the risk. Either way, you need to get out there and see them. If your business is not worth the price of a plane ticket and a few nights in a hotel then it begs the question, what is it worth?
These days I also buy from EU based countries,, quality control, Spain, Poland, Italy. While the prices are nowhere near as good as the Chinese the products and service are in a different league. Trading with other EU members is so easy and has become very profitable for my company. I would still advise visiting your EU based suppliers in person for the sake of growing your business, indeed the trips I have made to European cities have been much more pleasurable than those to industrial Chinese areas. Business trip to Barcelona anyone?
Julian Deverell is the owner and director of JDS Toys and Games Ltd, (est 2005) & The Regency Chess Company, the UK's finest supplier of chess sets, boards & chessmen.
