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  • Sourcing from China makes sense

    Sourcing from China makes sense

    These days, businesses have various options to become more competitive than their peers. They can relocate abroad for tax-avoidance purposes or to take advantage of lower labour costs, especially if they use an extensive workforce. But some companies choose to stay put and source their products from China instead. But why choose China in the first place?

    1) Low labour and manufacturing costs

    With a population of nearly 1.4 billion, it should come as no surprise that China’s labour costs remain low even though they began to increase around 10 years ago. Low labour costs are synonymous with low manufacturing costs and cheaper finished products.


    2) High-quality products

    China’s workforce is well educated and therefore possesses the relevant skills to manufacture high-quality, durable products. Many well-known brands have actually been sourcing their products from China for years.


    3) Reliable suppliers

    Chinese companies tend to be extremely reliable but you may wish to employ a sourcing agent to help you identify a trusted supplier. As a rule, Chinese suppliers like to develop a strong, long-lasting relationship with their customers as this will help them generate repeat business. Many Chinese companies bend backwards to meet their customer’s requirements.


    4) Strong industrial and telecommunications infrastructure

    China spends more on economic infrastructure than the U.S. and Europe combined. The country nowadays boasts an extensive road network and railway system which means that goods can be efficiently and rapidly transported throughout the nation. China also possesses various communications systems (Internet, landlines, cellular services) which means that you can get in touch with your suppliers whenever you want.


    5) Abundant natural resources

    China is a huge country which boasts large quantities of raw materials such as rare earth elements, gold, aluminium, steel, zinc, limestone, magnesite, copper, lead etc. As a matter of fact, 12 percent of the world’s mineral resources are located in China. In addition, China is constantly looking to secure access to raw materials around the globe. Sourcing raw materials from China definitely makes sense.


    6) Educated interpreters

    The Chinese are not lazy when it comes to learning languages so finding a good interpreter is usually quite easy. However, if you employ a sourcing agent it might be a good idea to ask them to identify a reliable, tried-and-tested interpreter for you. Although hiring a translator may represent an additional cost, it is well worth it to avoid any potential misunderstandings and to ensure that your chosen supplier is fully aware of your specific requirements.

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  • Source Supply Logistics, a British owned company, helps reduce procurement expenses of construction and mining companies by sourcing and supplying any type of goods, equipment and machinery from manufacturers around the world while managing supply chain, time, costs and quality risks.

    Our experienced multi-language team sources goods from a broad network of trusted and reliable manufacturers and handles whole supply chain from sourcing and procurement to quality control and shipment. The benefit for our clients is they can lower their operating costs by up to 50%, and get goods of required quality in a projected time.

    Need Global Procurement Support?

     Contact Our Regional Office