Speaker: Learn Basics Before Sourcing From China

CHICAGO -- The most common mistake novice importers make when starting out sourcing product from China is not acquiring very basic knowledge about that country, said Bill Liu, vice president, NaviAsia Consulting Group, Evanston, Ill. Just before speaking at a seminar during the International Home and Housewares Show here this week, Liu told SN that while there are many resources and consultants specializing in sourcing goods from China, the company itself, whether a supermarket or other firm, needs to do its homework. “We have seen many companies that haven‘t done that, and they have failed miserably,” he said. That is the key to obtaining the right product for the right price, and of the right quality, Liu noted. There is considerable upside for those who succeed, he added. “If you achieve just a 5% reduction in your procurement costs, it can result in probably a 30% upswing for your bottom line,” he said, or much more. “The bottom line is what drives the sourcing,” Liu said. -- Dan Alaimo