In this article, we will explain how a sourcing agent can help you avoid costly mistakes upfront when it comes to far-sourcing and manufacturing in China.

Various audits are available to you as a customer to audit the processes of your own suppliers. The most common method that customers choose to have the processes of our suppliers audited is the VDA 6.3 process audit (hereinafter referred to as VDA 6.3) developed by the Verband der Automobilindustrie (VDA), which assesses the quality capability and enables processes to be controlled and competent for the purpose of correction, prevention, and continuous improvement.

Supplier selection is one of the most important activities performed in today's business environment. Making a wrong decision in this field can result in operational and financial problems for the company. Based on previous experiences, sourcing experts already know that selecting a supplier from the lowest bid is not ideal, as lower prices usually hide lower qualities. From this perspective, the Total Cost of Ownership (TCO) concept is a reliable tool for successful supplier selection. In general, TCO is a calculation intended to highlight the difference between the short-term purchase price and long-term cost that occur during the entire life cycle of the item in the organization. Such analysis can also help to make critical make vs. buy/outsource comparisons.

Finally, after three years of uncertainty caused by COVID-19, a new phase full of hope and new opportunities has begun: we will continue to help more customers find suitable suppliers in China.