Assuming all buyers desire the best quality and lead time available at a given pricing point, and given that nobody likes to have their designs or other intellectual property compromised; then the appropriate strategy depends on two primary factors:
- The level of customization and
- The size of the order.
Large Orders can go factory direct.
Small Orders do not meet the minimum order quality (MOQ) of reputable factories in China and sourcing will most likely utilize a China-based intermediary (trading company, wholesaler or retailer for the very small orders).
Level of customization also has a major impact on strategy.
“Off-the-shelf” products are readily available in China and do not require redesign or new tooling.
Example: a toothbrush
“Tweaked” products have slight modifications and require minor adjustments to shape and function.
Example: toothbrush with adjusted handle produced under client specific brand and packaging
“Highly Customized” products require significant engineering and have major modifications to form and function.
Example: GPS enabled toothbrush and tracking software to allow parents to monitor children’s daily brushing habits
Different sourcing strategies apply to the different buyer situations above. The CSSC Project Advisor will work with the Client to review their situation, suggest a strategy and recommend appropriate services to ensure client goals are achieved in China.