Sourcing Genuine Components in China
Here are a few strategies for sourcing genuine components in China:
Example ONE: An Independent Distributor or OEM that buys direct
An Independent distributor or OEM, sources directly (on the open market) from Chinese component suppliers. The Chinese suppliers then source their component demand from an assortment of sub-suppliers. The Chinese supplier does generally not inspect these components. Sooner rather than later sub-standard components are purchased. Another western company learns an important lesson when purchasing components on the open market in China. Do not purchase components that have not been inspected or independently verified as genuine. ChipChecker is your trusted partner conducting inspections and quality control in China on your behalf.
To ensure only genuine components are purchased, ChipChecker and only one or two other companies whose integrity is beyond doubt, provide component inspection services in Shenzhen.
If you only require an inspection prior to purchasing components then the L15 Inspection Service is for you. Essentially the cost is only USD125 (Four inspections for only USD500), a fair price to find out if the parts are genuine or not. Buying components that have not been inspected, on the ground, in China, is a very expensive business decision.
To better understand exactly what our L15 Inspection entails, click
L15 Sample Inspection Report ChipChecker also has a five-minute movie of our L15 Inspection being conducted in a Chinese component supplier¡¯s office. To view the short movie please click : www.chipchecker.com To retain our inspection services please go to L15 How To Use to better appreciate and understand
how the complete process works.
Example TWO: An Independent Distributor or OEM retains ChipChecker to act as their Purchasing Agent
When ChipChecker sources parts for an independent distributor or an OEM we provide our L15 Inspection Service as a free service. If you have a PO in hand and a target price we will do all we can to meet your price. The benefits of retaining ChipChecker to source your parts are two-fold: genuine quality at a fair price. By exclusively providing your requirements to just one purchasing agent, the purchase price does not become inflated by a false demand. Most western resellers broadcast their requirements to hundreds of Chinese components brokers and suppliers for a target price on a specific component. What happens is that all the Chinese brokers start bidding this component thus falsely pushing up the market price. When the root stock holding suppliers of the component realize it is in demand they gouge the market with an unreasonable price. Even worse they have masses of counterfeit components produced, which explains why many Chinese brokers quote a seven-day lead-time.
ChipChecker¡¯s procurement team is based in Shenzhen China, Guangdong Province, which is a convenient one-and-a-half hours from anywhere in the Pearl River Delta ¨C China 's center of electronic assembly and light industry.
When doing business in China one has to have the capability to be on-site and work face-to-face with the Chinese component suppliers. ChipChecker¡¯s¡¯ services include:
¡¤ PURCHASE ORDER AND SCHEDULE MANAGEMENT
¡¤ PERSONEL COMMUNICATION AND SUPERVISION
¡¤ SUPPLIER SOURCING
¡¤ ON-SITE AUDITS/ INSPECTIONS
¡¤ PERIODIC INSPECTIONS
¡¤ PRICE AND TERMS NEGOTIATION
¡¤ SYSTEMS FOR ORDERING AND REPORTING
ChipChecker¡¯s sourcing consultants are all Expatriates from Canada, USA and Australia who speak English, Mandarin and some Cantonese. Our consultants negotiate with suppliers in their native language. Additionally, all ChipChecker sourcing consultants have on average over 6 years experience in purchasing from trusted component suppliers and OEMs.
The benefits to our clients include a broad base of potential and trusted suppliers, which ensures a low unit cost, and leverages our long-term sourcing relationships. Our team is committed to positively impact your purchasing requirements.
Example THREE: An Independent Distributor decides to establish a China Office ¨C Local Quality Control and Sales Operations
Chipchecker realizes that Independent Distributors purchasing components in China will eventually conclude that it makes financial sense to establish their own office in China. The benefits of establishing your own office include:
¡¤ Direct management and control of your component¡¯s quality control processes
¡¤ Direct management and control of your sourcing and sales personnel
¡¤ Low labor costs for sales and purchasing staff
¡¤ Affordable office space ¨C rental or purchase
¡¤ Affordable office furnishings
¡¤ Low labor costs for IT and Web development
¡¤ Affordable office equipment and PCs for current and future office use
¡¤ Outsourcing of administrative back office tasks currently being performed in-country
¡¤ Access to lower printing costs, i.e. business cards, and promotional materials
¡¤ Operate virtually 24 hours a day! When a North American office closes its workday, it¡¯s China office opens within a few hours. Vis-¨¤-vis, when a European office opens, it with have the advantage of having it¡¯s China office already been opened for a half day or more!
¡¤ Company productivity is doubled, with almost no additional expense generated, as the China office pays for its self within the first six to eight months.
ChipChecker assists independent distributors to establish their own office in a 90-day period for the very reasonable fee of under USD30,000 click Cost Justification , when most companies would have difficulty establishing the same office for USD60,000.
