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China sourcing

Qualifying a Chinese supplier: what to check before the first order

Finding candidates is cheap and fast. Establishing that one of them can actually deliver what you need is the work — and it is mostly unglamorous.

France → China

Qualification answers one question: if this goes wrong, does this company have the capability and the incentive to fix it? Everything below is a way of getting at that.

Four layers, in order

  1. Legal. The business licence: scope of activity, registered capital, how long the company has existed. Public and quick.
  2. Capability. Do they own the machines your product needs, or do they subcontract the critical step? Ask which parts they do not make.
  3. Capacity. Your order as a share of their monthly output. Too large and you are a risk to them; too small and you are invisible.
  4. Behaviour. How they answer a hard technical question, and how they behave when you point out a problem in a sample.

The layer people skip

The fourth. It is the only one that predicts what happens under pressure, and it is the only one you cannot outsource to a report. Deliberately raise a small problem during the sample phase and watch: a supplier who explains the cause is worth more than one who simply apologises and replaces it.