Why use CCIS?
Purchasing products from China has gained an increasing significance to international businesses, and importers as they seek to control their costs while still offering low-cost merchandise to their customers. China’s importance has grown enormously in recent years due to significant gains in management and quality. The Chinese have been extremely successful in these areas.
It’s difficult to ignore the trends in sourcing. Everywhere one looks, the vision is the same, and it’s all about purchasing from China. (Example): In 2005, the USA exported in the region of $42 billion dollars worth of goods in the direction of China. However, at the same time it made purchases, and imported more than $240 billion dollars worth of products and supplies from China.
Sourcing products from China has gained great prominence due to professional sourcing, supply, and recognised exporting companies such as CCIS Ltd. CCIS is a Chinese based company which has both a Chinese and a western European influence. This works extremely well, and provides the company of an overall understanding of both Western and Asian business demands and policies. Therefore there is no breakdown in communication understandings within the company.
The CCIS Headquarters are based in the heart of Beijing, and currently has two other offices in both London UK, and Dubai UAE. These offices work effectively within their regions, and the future plans are to expand into other countries as time goes on.
It is a well known fact that China now plays a major role in low cost high quality product manufacturing, and exporting. Therefore we feel that using CCIS as an additional arm to your procurement structure could become a great asset to your business, and its achievement goals.
In recent years, many multinational companies have reduced their production volume by purchasing products directly from China. Instead of placing orders through Hong Kong, they are now placing orders direct with Chinese companies. Some of these companies have even gone as far as setting up their own establishments in China to enforce their purchasing strategy, as well as to reduce their overheads and purchasing costs. Purchasing products from China now seems to have become the growing trend of many companies around the world.
The reasons for China’s success are totally transparent, and they include, but not limited to:
- Low overheads and labour rates.
- Stable economy
- Large indigenous population
- Good Communications
- Huge Industrial Base
- Growing infrastructure
- Supportive government
- Entrepreneurial spirit
There are obviously many great benefits to be made by purchasing products from China, but there are also many drawbacks and risks too should you get it wrong.
How can you benefit by purchasing products directly from China while avoiding the pitfalls? Well, there are only two way, which include finding a good Chinese supplier directly, or going through a professional sourcing, and exporting company such as CCIS Ltd.
The Facts
Going Direct
Going the direct route can face many difficulties. Besides the language and cultural barriers there are also simple issues of experience and proximity. Locating the perfect supplier is only the first step. Monitoring, quality control, and on-time delivery are all equally important, and none of them can be handled effectively at long distance.
Therefore, in most cases, unless a company is planning to hire knowledgeable staff, and set up a China based procurement function, then the direct approach can be a very daunting and a tricky proposition for the best of companies.
Use of Third Parties.
Third party agencies can be very beneficial at facilitating your initiatives in purchasing products directly from China. However, many agents lack the true China mainland experience, and tend to depend upon long chains of tenuous relationships to accomplish their goals. This means that their service isn’t an ideal solution, and it’s likely to prove to be more expensive due to the number of middle people involved.
A good third party agent possesses the following attributes:
- Offices in mainland China and other countries that cover their respective global areas.
- Both Chinese and native nationalities that specialise in procurement in mainland China.
- Specialists that can assist in the entire sourcing procedures, including, but not limited to:
- 1. Engineering new items
- 2. Identifying and qualifying the correct suppliers
- 3. Negotiating lower prices
- 4. Ensuring, and overseeing good quality control and assurance
- 5. Using a registered and approved Chinese export agent for all your shipping requirements.
With all these characteristics, a third party can become more than simply a way to get products and supplies from China. It can also become an effective China-based representative for your company, with none of the cost implications associated with office set up and maintenance.
CCIS is that professional third party organisation that we just highlighted, and could become a very cost effective solution to all your procurement and importing procedures. Why not take a look at our products page and see what we have to offer.
