As I talk with clients, I keep stressing one thing: working with the right Chinese suppliers is the single most important success factor for importers.

And yet, many buyers ‘get in bed’ with the wrong people. Choosing the wrong partner is often the cause of death of many Kickstarter or Indigogo projects. When developing a new product takes months and the first batch absolutely has to ship by a certain date, there is no backup plan.

I am thinking of writing the following articles. Feedback is welcome. I am sure I forgot some important topics.

1. Off-site: background checks

• What buyers can check on the internet, in government databases, etc.
• Common red flags

2. Off-site: questions to ask before going to the factory

• What to ask for (cross-checking facts, customer references, familiarity with export standards…)
• Common red flags

3. On-site, subjective evaluations

• The owner’s background, motivations, recent investments…
• Ease of communication with key personnel, engineering contact, etc.

4. On-site, compliance driven: quality audits

• What is usually checked
• What really matters (in general, and if particular requirements for end product)
• Sub-suppliers
• Blind spots of this approach

5. On-site, compliance driven: social audits

• What is usually checked
• What really matters
• Managing different retailers’ or brands’ requirements
• Blind spots of this approach

6. On-site, process & system driven

• Flow, work-in-process inventory, speed, quality feedback
• Process controls
• Equipment maintenance
• Production planning

7. On-site, design & engineering capabilities

• Design, CAD system, design testing
• R&D
• Prototype, prototype testing

8. On-site, testing facilities

• Test facilities for prototypes and products
• Gauges, testing stations, etc. in production

9. On- and off-site: more in-depth due diligence

(Applicable with a buyer has to commit to working with 1 manufacturer for the long term, for example when an end customer has to approve the facility or it has to be certified to a certain standard that is difficult to achieve.)

• Financial health, capital, debt, partners
• Licences, respect of regulations…
• Other indicators that they are in the game for the long term

10. When and how to check pricing & payment terms

• Organized RFQ, comparison of potential suppliers
• Confidentiality of product design
• Legal and non-legal tools

11. Final choice

• Must-haves vs. nice-to-haves
• Control of, and visibility into, the supply chain
• Cultivating a backup plan

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This is just an initial plan and it might change. Any advice on something I forgot is welcome!