Negotiating terms, leverage over suppliers, and describing your needs - Sourcing from China (Part 2)

In this episode... In episode 65 we discussed the different supplier options open to buyers who’re sourcing from China. One of the options is to do the sourcing yourself. Many importers want to pursue this, so we're creating a mini-series of episodes that explores the sourcing process from China with tips and best practices from Sofeast's CEO Renaud Anjoran. In part 1 of the series (episode 69), we looked at the early stage of sourcing where you find your potential suppliers, verify them, and cultivate backups once you’ve settled on a first choice. Now, here in part 2, we’re going to explore the terms you need to negotiate with your chosen supplier, how to keep leverage over them, and how and why to clearly describe what you actually want from them at the pre-production stage.   Show Sections 00:00 - Introduction.  02:20 - Why is it important to be organized and avoid looking too inexperienced when negotiating terms with a new supplier?  05:27 - What terms do you need to negotiate? 05:50 - The price of the goods  07:02 - Lead time  09:58 - Incoterms  10:53 - IP protection  12:11 - Transparency over the supply chain & access to the manufacturing site  15:35 - The quality standards  17:53 - Payment terms  24:29 - How to keep leverage over suppliers?  28:09 - What payment tools do we have to keep leverage?  35:36 - Keeping leverage over your tooling.  38:20 - Paying by letter of credit.  40:49 - In what ways should you describe what you're expecting to receive from your supplier?  49:13 - Wrapping up.    Related content... Negotiating With Chinese Suppliers: The Terms you Need to Discuss How To Keep Leverage Over Suppliers Pre-Production: Describing What You Want 9 Things Small Importers Can’t Negotiate With Chinese & SE Asian Suppliers [Podcast] Incoterms – what are they? How To Create A Valid Manufacturing Contract In China To Protect Your IP IP Protection in China when Developing Your New Product [Importer’s Guide] How to Pay Chinese Suppliers by T/T Payment (Bank Wire Transfer) How to get a Chinese supplier to accept a letter of credit How to move Plastic Injection Molds between China Factories [10 Tips] Documenting Your Company’s Quality Standard into the Details   Get in touch with us Connect with us on LinkedIn Send us a tweet @sofeast Prefer Facebook? Check us out on FB Contact us via Sofeast's contact page Subscribe to our YouTube channel   Subscribe to the podcast  There are more episodes to come, so remember to subscribe! You can do so in your favorite podcast apps here and don't forget to give us a 5-star rating, please: Apple Podcasts Spotify Stitcher Google Podcasts TuneIn Amazon Podcasts Deezer iHeartRADIO PlayerFM Listen Notes Podcast Addict