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The Problem of Lead Content in Chinese Products

Why Source Overseas?




Why Source Overseas?

If you're thinking about not partnering with a supplier for your client's overseas order, it's time to think again.

Sourcing on your own may sound like a good idea until you really explore what's involved. While it may seem like a great way to save on costs, in the end it's more likely that instead you'll waste time and money - way above and beyond what you might have saved - dealing with insurance fees, language issues, quality control and customs, taxes and tariffs, and proper documentation, to name just a few matters of concern.

The appeal of going directly to an overseas factory is understandable. As we all know, everything just costs less in China. China and Southeast Asia are thriving economically. Production workers there make 80 cents per hour, as opposed to nearly $22 in the U.S., according to Boston Consulting Group.

Don't be blinded by the numbers, or you too may be blindsided by the hidden costs and risks associated with overseas sourcing. Dealing with overseas manufacturers requires the right expertise - and years of experience. For the newcomer, negotiating those waters can be tricky. Perhaps the hard-learned lessons (true tales!) from fellow distributors and promotional consultants who tried their hand at overseas sourcing will prove enlightening:

• Consultant X, who ordered a hefty supply of pencils from a reputable Asian factory, was thrilled by his savings…until he had to come up with $40,000 more than planned thanks to unanticipated duties and taxes.
• Consultant Y ordered a million ball caps from China but didn't obtain the proper visas needed for quota items. As a result, the hats weren't allowed into the U.S. - and the order ultimately went elsewhere as well.
• Distributor Z, who got her Taiwanese order of watches "for such a great deal," found herself responsible for nearly $30,000 in anti-dumping fees. (Anti-dumping fees are additional duties imposed by an importing country when the price of imports is less than the price charged in the exporter's domestic market.)

Talk to almost anyone in the business and you'll hear a similar horror story. It's not coincidence. And, as many of the burned will tell you, going it alone is simply not good business.


The Benefits of Partnership

One of the main reasons distributors run into trouble when handling their own global sourcing is lack of experience. Overseas sourcing is far more complex and risky than it may appear on the surface. Along with the risks involved with clearing customs, obtaining proper documentation, anticipating all relevant taxes and tariffs, and acquiring the necessary insurance, there are often also issues of quality - namely that the product quality expected doesn't match the quality of the delivered product - because there hasn't been proper quality control and testing. As Daniel M. Krassenstein, co-owner and Shanghai-based China chief representative for Linwood, New Jersey-based supplier BAS, will attest, "Trying to resolve these issues when under time pressure and in a foreign language can be a monumental task."

Since there are a few select U.S. suppliers who have the skills, resources, and willingness needed to help distributors source overseas, why take on the risk yourself when instead you could take advantage of their expertise?

Once you find a supplier with the right qualifications, overseas sourcing is no longer so complicated. True, there are many details to coordinate, but an experienced partner will handle all those details and assume the risks themselves.

Unlike someone new to the game, these suppliers have spent years cultivating relationships with carefully chosen overseas manufacturers and factories. As a result, they receive preferential treatment (and often pricing) because of these long-standing, mutually beneficial relationships and a history of doing business together.

"Sourcing custom orders from Asia is all about clear communication and relationship-building," says Jim Simone, senior vice president/chief marketing officer for Indianapolis, IN-based supplier Norwood Promotional Products, Inc. "Suppliers have moved past the cultural differences and established relationships with overseas factories, which a distributor can't do quickly and easily. Suppliers know the best factories overseas."

Finding a partner who's put the time into building these overseas relationships will ultimately save you time. By engaging a qualified supplier to focus on their area of expertise (overseas sourcing), you're freed up to concentrate on yours (bringing in more business).


Picking the Perfect Partner

So, how do you select the right supplier? Put in the time to research it. Ask lots of questions about their process and procedures, their industry background and international experience, their overseas presence, their familiarity with the languages and customs, their global relationships, and so forth. You also want to make sure that the supplier you choose focuses exclusively on overseas sourcing instead of treating it as side business.

As your research will bear out, Get It Global fits the role of supplier partner perfectly. Overseas sourcing is their specialty and their sole business focus. Get It Global team members have worked, studied, and lived in China and speak fluent Mandarin and Cantonese. They excel at vendor relations and customer service. Years spent overseas have resulted in strong, enduring partnerships and a deep understanding of the global business culture, giving Get It Global a distinct edge over domestic competitors. So when you work with Get It Global, you work directly with a team that communicates first-hand with China, instead of working through a rep that then has to pass the information on to yet another person. The more people you have to deal with, the higher the chance of miscommunication and error.

Along with US-based headquarters in Columbus, OH, Get It Global's international offices are strategically located in Shenzhen and Hangzhou, China - which means there is always staff on location to visit factories, review products, provide quality control, handle logistics, manage customs, and ensure on-time delivery. Get It Global stays in constant contact with its manufacturers: factories trusted by leading US retailers that have the expertise, experience, and reliability to produce top-quality goods.

Once you've placed your order, the Get It Global team is also in constant contact with you, keeping you up-to-date on your project's status. Good communication, they feel, is key to project success.

The more you find out about the way Get It Global does business, the less you'll feel inclined to try "going it alone." With Get It Global as your supplier partner, you'll find out how rewarding overseas sourcing can truly be.