China Sourcing Strategies, Tips - Mike Bellamy, Global Sources Summit

In his presentation at the April 2016 Global Sources Summit (www.globalsources.com/summit), Mike Bellamy shared China sourcing strategies, tips and templates based on vast experience in China.
Mike came to Asia in 1993 and is now responsible for sourcing $200 million of product on behalf of his clients at his boutique sourcing agency - PassageMaker.
Here are key takeaways from his presentation:
1. Have a clear understanding of what attributes you want in your supplier. Every buyers’ needs are different, so right from the beginning know what kind of supplier you’re looking for.
2. Instead of sending an email to 100 suppliers asking them for their product details, shortlist 10-15 suppliers and have deep discussions with them.
3. Instead of asking a supplier “Can you make this?” ask “Have you made this product before? When did you last make it? Are you running parts now? Can you show me a sample? If the supplier doesn’t have ready samples at hand, it probably means they haven’t done the product in the past.
4. Ask for references: If the seller can’t come up with at least one happy customer that they can trust to talk to you, that’s a big red flag.
5. Do not focus on price alone: If you focus on price, the supplier may adjust the quality level to meet your pricing.
6. Place a small test order before placing a full order. This will tell you how well the supplier can make your product, identify customs hiccups, and help get feedback from customers.
7. Write a detailed Purchase Order before placing an order. Ideally, this should be a bilingual PO that has been chopped by the factory. By signing a contract, you’re showing the supplier you’re not an inexperienced buyer and you want to do things the right way. That alone could protect you.
8. Structure your payments to performance: Payment terms need to be linked to some type of action. If you’re paying 30/70, give 30% at the beginning but the rest should be given only after 3rd party QC or after you visit the factory. Even if you make the impression that you or a 3rd party will inspect products before they leave, the level of quality will improve.
Learn more about the next Global Sources Summit held every April and October in Hong Kong: www.globalsources.com/summit
Get advice from experts and network with other Amazon sellers in the Smart China Sourcing Facebook Group: groups/smartchinasourcing

[@rajeshashar3081]

Good plate form for buying

[@Ilovestreetfoodtravel]

Nice video

[@ramyberguiga9749]

Great presentation Mike! really enjoyed the video, to bad I couldn't attend the summit this year. Global Sources doing a great job! Excuse my asking, is there any way I could get the sample of the PO/MOU/ Vendor Code of Conduct that was mentioned in the presentation, that would be of great value to me, Thank you very much.

[@GlobalSourcesDotCom]

Hi Ramy, Glad you found the presentation useful, and thank you for the appreciation :)
Could you please send an email to [e-mail], and we'll put you in touch with Mike. You could just paste your message above in the email.
PS: In case you'd like to attend the next conference in April 2017, Super Early Bird Tickets are now available: www.globalsources.com/summit

[@ramyberguiga9749]

Thanks! Will sent an email right away, thanks for the notice of the super early bird tickets, much appreciated.

[@arifulislam5616]

wow very nice i like this video Good plate form for buying

[@tonycho2257]

Hi there!
This video is very useful for our company. I also would like to receive PO/MOU/Vendor Code of Conduct. What should I do?
Should I send the email to [e-mail]?
Thank you for your kind help in advance.

[@GlobalSourcesDotCom]

Hi Tony, we're very pleased that you find this video useful!
Yes, please send an email to [e-mail] and we'll forward this request to Mike.
At the same time, you might be interested in the upcoming Global Sources Summit (www.globalsources.com.summit), where Mike will be returning to speak and network with attendees.