Tag Archives: sourcing

Accurate China Insight: How much does a China sourcing consultancy typically charge in fees or commission for supplier identification, negotiating, inspecting, and product shipment?

It’s unlikely you will receive a public declaration of charges by a ‘consultancy‘, which is akin to asking how many drops of water are in a bucket. Charges (whether hourly, fixed fee, or on a commission basis) can vary that much.

If you think it’s expensive to hire a professional consultant to advise you on doing business in China wait until you hire an amateur to do the job

“If you think it’s expensive to hire a professional China business consultant to advise you wait until you hire an amateur to do the job”

Here in China many dubious consulting companies claim to offer the services you require, so the first box you need to tick is making sure the sourcing consultancy you eventually work with can reduce your overall costs, reduce your time to market, and improve the quality of your product, thus making the charges worth it. Actually, the sourcing consulting company should be able to save you and your company money overall, even with their charges.

In general, experienced and reliable sourcing consultants, who are not ‘fly by night,’ should make the overall supplier identification, negotiation, inspection and shipping (product import) processes faster, cheaper, and result in better quality control.

Simply put, when it comes to separating fact from fiction says Niall O’Reilly, a China business consultant with over 24 years ‘on the ground’ China business experience:

“If you think it’s expensive to hire a professional China business consultant to advise you wait until you hire an amateur to do the job!”

Accurate Group an Ireland and China-based business advisory and sourcing consultancy dedicated to building new opportunities for foreign businesses in China

“要知道怎样前面的路怎么走,最好问从前面返回的人” “To know the road ahead, ask those coming back” (Chinese Proverb)

So you may now be asking yourself “how do I distinguish average sourcing consultants from the professional?”

The average sourcing consultancy will only contact factories and manage communication between you and the factory…and little else.

The best professional sourcing consultancy will employ its considerable experience to evaluate the strategy of your company and engage in a strategic sourcing process that ensures your particular company needs are met. They will not only manage communication with factories in China, but they will anticipate potential risks, and either resolve the problems or develop contingency plans for such issues before they occur. If unforeseen problems do occur, and here in China they will occur, the sourcing consultancy is there to solve the problem and improve procedures so it is controlled in the future.

The Chinese Proverb “一分钱一分货” (pronounced “yi fen qian, yi fen huo”), which translates literally as “one cent gives you one cent’s worth of goods”, succinctly sums up the answer: “you get what you pay for”!

Source: Accurate China Blog – http://www.accuratelimited.com/blog.view.php?id=aFcU1cUL1jw=

Accurate China Business Advisory and Sourcing Consultancy: 24 years "on the ground in China"

Accurate Group is an Ireland and China-based business advisory and sourcing consultancy dedicated to building new opportunities for foreign companies in China

So here is a public declaration of Accurate Group’s consulting fees: We have a basic charge for the opening consultation and initial advice. Thereafter, for a formal engagement our fees are structured according to our clients  specific requirements.  The fee arrangements can be hourly, contingency, flat-fee, or commission-based.

Niall O’Reilly

Managing Director, Accurate GroupIreland China Product & Business Development (Export Sourcing Import) Consultancy

Tel: +353 1271 1830 / +86 152 5719 4468

http://www.accuratelimited.com

This Accurate China Insight originally appeared in the Hangzhou Business Network (HBN) forum: 

http://www.linkedin.com/groups/Hangzhou-Business-Network-HBN-803177/about?trk=anet_ug_grppro

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Accurate China Insight: Should the Ireland propose a free trade agreement with China?

Given Ireland’s financial predicament the need for hard cash in order to create jobs makes for an enticing prospect of going it alone and negotiating a Free Trade Agreement between Ireland and China.

However, cutting a separate deal with China for more business deals over the short-term would be viewed as playing into a China strategy aimed at splitting EU unity by buying off so called ‘peripheral members’ and pitting them against larger members, which in the long run is likely to run against the interests we share with fellow EU members.

China denies it has such a strategy arguing, with considerable merit, that no matter what it does with its money vis-à-vis EU-related investments there will always be detractors. Moreover, as you can see in the insightful “Scramble For Europe” article http://www.ecfr.eu/page/-/ECFR37_Scramble_For_Europe_AW_v4.pdf (from the European Council of Foreign Relations), the EU already appears fractured over the approach individual members have taken with respect to their dealings with China, for whom addressing their current financial woes is the matter at hand: tomorrow and the long term cohesion of the EU can wait.

Accurate China Insight: Should Ireland propose a free trade agreement with China?

Should Ireland propose a free trade agreement with China?

Niall O’Reilly

Accurate Ireland – China Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com/blog.php

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Filed under Accurate China Business Services, Accurate China Insight, Accurate Group, China, China Ireland, Chinese, Economy, European Union (EU), Ireland, trade

Accurate China Insight: If your business is product sourcing: How competitive is the ‘Made in China’ brand?

Despite the Chinese Government’s past success at restraining inflation, accelerating food, fuel, raw material and labour costs have resulted in a widely held belief that average inflation rates of 4 to 5 percent are here to stay in China, at least over the over the next decade.

Which raises the question: With rises in wage and manufacturing costs set to be the norm is China still competitive as a product source for Ireland’s importers? Accurate China Insight: If your business is product sourcing: How competitive is the 'Made in China' brand?

Ireland’s importers are right to exercise caution when sourcing from China.  However, China still has much working in its favour:

  1. China is politically stable, and such stability is good for business
  2. Low cost countries surrounding China are also weathering an inflation contagion, with inflation rates in Vietnam, India and Pakistan increasing at a much faster rate.

June 2011 Inflation Rates:

Vietnam 20.8%

Pakistan 13.3%

India 8.7%

China 6.4%

Indonesia 5.5%

Malaysia 4.6%

Philippines 4.6%

Thailand 4.1%

(Sources: Respective country central banks) 

3.  Production costs in China are still low, despite rising costs.

4. Skills levels are generally high. While China’s factories could be said to be still at an early stage in their execution of innovative manufacturing techniques, their production processes are still well ahead of similar production operations in surrounding low cost countries.

5.  The striking effects of the ‘Clustering’ in China’s three economic powerhouses [Pearl River Delta (from Hong Kong to Guangzhou), Yangtze River Delta (Hangzhou, Suzhou, Nanjing and Shanghai) and the area around Beijing and Tianjin] which have resulted in the construction of excellent infrastructure, a concentrated material supply chain, and an experienced and skilled labour force.  There is no evidence of such a clustering blend being prevalent in other surrounding low-cost countries.

6.  Productivity and industry familiarity.  While the costs of labour and logistics, as well as labour availability, are driving up factory output costs along China’s coastal rim, cities in central and China, such as Wuhan, Chengdu, Chongqing, Zhengzhou and Hefei, and their surrounding provinces, are much more cost competitive with respect to the manufacture of products in which the value-added and process complexity is low.  Meanwhile, the coastal manufacturing hubs, with their knowledge of particular manufacturing industry sectors, are becoming more focused on complex, skill intensive factory production.  In surrounding low cost countries such instances of high productivity levels and industry knowledge are limited.

The biggest issue for Ireland’s importers relates to fluctuating oil prices and their impact on the cost of shipping products sourced from China to Ireland, which is a worldwide occurrence.

Source:

Niall O’Reilly

Director for China, Irish Exporters Association

Accurate Ireland – China Business Advisers – Products & Services Sourcing | Business Development Consultancy

Tel: +353 1271 1830 / +86 15257194468

http://www.accuratelimited.com

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China – Under The Hood: Is Ireland in danger of becoming too dependent on China?

A wake up call.
Ah the miracle of the global economy. Having just flicked through several online Irish newspapers, trawled through the websites of well-known Irish hardware stores, clothes retailers, and a host of other outlets selling furniture, garden, indoor, outdoor is very clear that:
Everyone in Ireland is coming to depend on what is happening in China…
Look around you… What are you sitting on? Typing on? Looking at? Talking into? They’re all very likely Made in China, right?
Go around your house and get rid of everything that is Made in China. Take it all away and for the next twelve months don’t buy anything from China, even if it has a Made In China component, just don’t buy it.
What would you have left? Scary isn’t it. Life would be pretty damn awkward.  
China makes around 80% of the world’s photocopiers, 65% of the world’s mobile phonesMobile Phone, 60% of its digital camerasCamera, 50% of its computers,Computer 60% of all its bicycles, 45% of its microwaves, 70% of all its toys, and 50% of all its textiles http://www.accuratelimited.com/entry_detail.php?entry_id=3&entry_type=insight. They are all produded for little cost by low-paid Chinese labourers.
This has huge consequences. Surely Chinese-made products are saving you the average shopper in Ireland hundreds if not thousands of euro a year. Chinese production and Chinese spending mean that you in Ireland get cheap goods and low interest rates.
And there is no way out…. There’s a recession, with all its belt-tightening implications, and you need to save all the money you can. So keep buying Made in China (so long as the same product is not still being made in Ireland), and if you see something from China you like but can’t find in Ireland give Accurate Group a tinkleTelephone receiver and we’ll have you sorted in a jig.Sun
Oh, and a final thought……………. for those of you who enjoy the savings and yet complain about the poor quality of Made in China products, China’s sweat-shop labour conditions, and the loss of Ireland’s manufacturing base to China to be blunt: ‘You can’t eat your cake and have it too’, meaning keep slamming China for its numerous inconsistencies, whether pollution, safety, quality or autocratic abuse of power-related and all those annual savings at the check-out counter of hundreds or thousands of euro will disappear. You know, killing the goose that laid the golden egg and all that…………… Ok enough. I’ll stop here and have a mug of Barry’s Tea, one taste that China can’t replicate, even if the mug, water and milk is from China, the tea from Sri Lanka, and the bag itself is from God knows where.

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