While dealing with any overseas country, it is prudent to develop a checklist so that you may avoid any financial or other kind of loss.
There are many Asian countries such as India, China, Vietnam, South Korea, Hong Kong, Taiwan, Indonesia, and Malaysia that are industrially well-developed and can offer manufactured products at much reasonable prices.
While dealing with a purchasing agency in Asia, you need to be aware of the regulations of that country and you must update yourself well. In this post, we will discuss a few important things that you must consider so that you may not regret it later.
- Do proper research about the market
As the market in various Asian countries is constantly growing and hence you need to be aware of them. It is therefore necessary to do proper research on them so that you can take a prudent decision.
- Understand the competition
There is growing competition among Asian countries as technology is constantly updating in these countries.
You must therefore study the competition so that you can have a better understanding of this. Awareness will help you to negotiate better before you place your order.
- Evaluate your supplier
Before you finalize your supplier, it is necessary that you must properly evaluate your supplier. Many Asian companies are these days ISO certified company, where you can expect a certain quality system in place.
- Calculate the total cost of import
While calculating the cost of your product being imported, just the unit cost is not sufficient to get an idea, of how much cost you have to incur.
You need to consider all the other costs involved including custom clearance, transportation, and many other such charges that you need to pay for importing your item.
Before placing your order, you must be very clear that you remain well within your budget, otherwise, your profitability will reduce as a result.
- Ask for a sample for evaluation
It will not be out of place to mention over here that getting a sample is mandatory before placing an order. You must evaluate the sample with the help of your technical team and get it approved.
- Tie up with any third-party inspection company
If you are importing from a certain purchasing agency in Asia then it is important to get the quality of your material evaluated properly.
You may either send your own quality team or a better alternative is to hire certain third-party inspection services available in that country.
- Have a clear idea of payment terms
It is very important to read and understand very carefully the entire terms and conditions of payment of the purchasing agency in Asia. This is an important document that you need to always refer to while making your payments.
- Ensure that the supplier has understood your specification
Before placing your order, you must ensure that your supplier has fully understood the specification of your product and that both you as well as your suppliers are on the same page.
- Keep in mind the holidays of the respective country
Often holidays can disrupt your supply schedule and hence it is necessary to do advance planning for that. Every Asian country has its own set of holidays based on their local culture and customs.
There are a number of Asian countries that are now supplying many different quality products at a very reasonable cost. However, while dealing with any purchasing agency in Asia, it is important to be cautious and develop a few checklists as mentioned in this post so that you may not suffer any financial loss.