GlobalTQM | Sourcing and Manufacturing product in China for all entrepreneurs by David Hoffmann

Tired of encountering challenges in logistics and sourcing products from reliable suppliers. We have an exclusive opportunity for you to gain valuable insights from an industry expert and elevate your sourcing game to new heights!

Here is the podcast episode on Global Sources, where David Hoffmann, the renowned sourcing and quality control expert from GlobalTQM, reveals the secrets to successful sourcing and building direct relationships with suppliers. Gain a competitive edge in the e-commerce marketplace.

Listening to this podcast episode will provide you with practical strategies and expert advice to overcome the challenges of sourcing and ensure a smooth supply chain process for your business.

Here are some key takeaways from the episode:

Direct Communication: Learn why small entrepreneurs should prioritize direct communication with suppliers, going beyond online resources and price points.

Red Flags to Look Out For: Discover the red flags that indicate unreliable suppliers, such as unrealistic pricing and poor communication.

Checklist for Evaluating Manufacturers: Gain insights into the checklist that GlobalTQM follows when evaluating manufacturers for sourcing products. Learn how to assess factors such as production capacity, communication skills, quality control measures, certifications, and experience in your country.

Importance of Trust and Transparency: Understand the significance of finding trustworthy and transparent suppliers who are honest about their capabilities and limitations. This can help you avoid last-minute problems and production delays.

Global Sources is best recognized for its multichannel B2B marketplace, sourcing platform, and trade exhibitions.

It may prove challenging to navigate the continually changing sourcing landscape. In this podcast, we explore The New Sourcing Landscape of 2023 and look more closely at how the situation has altered over the past year and what you need to do to move forward in 2023. We were pleased to participate in Global Sources' "Buyer Fire Side Chat" event.

Moreover, learn more about what you should do right away to adapt to the changing sourcing environment. Tom McGrenery from Global Sources and David Hoffmann from GlobalTQM will be the guest speaker.

Global Sources is best recognized for its multichannel B2B marketplace, sourcing platform, and trade exhibitions.

This episode is packed with helpful advice on getting to the bottom of product quality, understanding AQL standards, and how to communicate your expectations to your suppliers effectively.

I am interviewing an expert on China quality control, and it is a great honor to get access to someone with this much experience.

Dr. John Higgins has a doctorate in electrical engineering, and he's been a mentor and advisor to me for the last 25 years on a number of projects. If anybody in this world, is the most experienced quality control, it's definitely Dr. John Higgins and our black belt expert in six sigma and lean systems. In this episode we will touch upon:

• VOC - Voice of the customer drives everything in quality and business decisions.
• More effective ways to inspect than AQL
• Reliability is time to failure, which is overlooked and very important
• You can’t inspect the quality into a product.
• Factories should self inspect, so knowing their inspection procedure is critical.
• Suppliers should not move the burden onto inspection companies; it’s their job.

Learn more about China’s power crises and how it affects sourcing in China!

Hey guys, today is a real treat!

I am interviewing an expert on China sourcing, and it is a great honor to get access to someone with this much experience in China because the big brands usually hide these guys in the background.

Chris has worked with every major brand. To name a few; Blendtec, Honeywell, Breville, Cuisinart, John Deere, Medtronic, Binske, Garmin, Storm Kimonos, Addidas, and so many more.

Today we will be discussing with him a range of topics;

1. What are the current challenges of China’s power problems?
2. Where and why are companies moving manufacturing out of China?
3. Is China still the best place to source for small businesses and small purchasing volume.
4. What product categories are the best sourced out of China?
5. Can you save more in other countries?
6. How and why should we move production from China?
7. Is there a mass exodus from China manufacturing?
8. Interesting anecdotes and tips from Chris on dealing with Chinese suppliers.

I hope you enjoy the podcast! Remember to schedule your free call today with our team on the ground in China. You can discuss any sourcing issues or manufacturing needs in China, no matter how big or small.

In this episode, we will address the usefulness of an NNN agreement and cover in detail the good, bad, ugly, and realistic.

We will discuss whether you are being responsible for your expectations and intentions behind the NNN agreement, down to the difference between an NNN agreement and an NDA agreement.

In this episode we cover:

• How existing relationships can go bad
• The importance of speed of action
• Using WeChat effectively to nurture relationships with your suppliers
• How to get your customers on your side when things go south!

This episode is packed with useful advice on getting to the bottom of production delays, using WeChat effectively to communicate with suppliers, and is a real story from the ground in China. We deal with problems, how they get resolved, and key takeaways.

In this episode we cover;

• How existing relationships can go bad
• The importance of speed of action
• Using WeChat effectively to nurture relationships with your suppliers
• How to get your customers on your side when things go south!

The ultimate product research and validation.  

I never thought it possible to sell without inventory.

Have you ever had this feeling that your supplier is getting slower at responding?

Well, this week, I did an online presentation discussing the different scenarios why your supplier might be slower at getting back to you, and how you might be able to fix that!

We even included a slideshow so you can watch this on YouTube. [click here to watch]

This episode will also cover:

• How your supplier might be seeing this situation differently, and if your questions are making your suppliers doubt you?
• When is the right time to pull the plug on your suppliers?
• What can we do to help us and our suppliers understand each other better?

You can also  watch it on YouTube here

I hope you enjoy it!

Let us know if you have any questions. 

This episode is different from the others because it doesn't cover specifics on sourcing and developing products in China…

It does delve deeply into what makes entrepreneurs successful, and I share some of my own personal background stories and journey. So I’m opening up and sharing it all in the hope you find some inspiration and motivation.

Do they say the shortcut to success is great mentors? I couldn’t agree more.

 Also knowing who you are, and leveraging those traits in business is key.

Matt Brauning from the Driven Entrepreneur is an amazing podcast, and his interview went in a direction un-expected to me.

In this episode, we share some fascinating secrets, including:

• How big brands source from the Far East?
• How Apple made concessions for WeChat?
• The key to success when trying to build a product in China.

Hey Guys,

This week we are shifting the focus into an online master class, discussing the different forms of online product sourcing platforms.  We even included a slideshow if you are watching this on youtube.

If you ever wondered which option is best for your company, this episode will answer your questions, including:

• The Four Major Product Sourcing Platform options
  
• How you can build your own network by owning your own data
  
• How to keep process over emotion and why this is important
  
• Why a Community Platform may serve your company best
  

Hey Guys,

I wanted to share a recent interview I did on another great podcast called The Business of ECommerce. Charles Palleschi, the host of this podcast, asked me some really insightful questions that really drill down into the day to day specifics of Sourcing Products from China.

We covered MANY different topics, including :

• How being on the ground in China creates opportunities
  
• How having “trusted” third parties is essential
  
• How to protect your IP in China by registering your trademark
  
• How and when to negotiate on price with the factory
  
• How “What you don’t say” could be your biggest problem
  
• How to build your team in China?
  

With the increase of traffic online, especially related to buying products as a result of the Coronavirus pandemic, today’s topic is very timely.  Our chat focusing on moving from Vendor Central to Seller Central on Amazon will certainly help your business retain more revenue and ultimately help you navigate these difficult financial times.

Some of the highlights of our podcast on this very important topic include:

• Deciding which option is best for you - Vendor or Seller Central
  
• Amazon’s reputation and why it matters to you
  
• Moving from Vendor Central to Seller Central
  
• How to be the Master of Your Own Destiny with Amazon, by using your own brand
  
• Avoiding pitfalls in both Vendor and Seller Central
  

Hey Guys,

I can’t keep quiet and not share my thoughts and personal plans during these tough times.

So in a special edition Podcast, we share not only the impact of this difficult issue on our lives generally, but more specifically the best business strategies to employ, including:

• Dealing with the inevitable drop in demand
  
• Proactively monitoring “supply chain” impact
  
• A reminder that, based on history, markets will recover
  
• With Every Crisis, there is an Opportunity
  

I was interviewed on another great podcast called ECommerce Excellence. The host, Joris Byron, asked me some really great questions and drew out some great insights, issues to avoid, how to overcome obstacles and general wisdom in Sourcing Products from China.

As usual, we also drilled down on some specifics, such as:

• The two critical barriers with Chinese manufacturers or suppliers
  
• Unspoken rules to follow
  
• Keys to success
  
• The pros and cons of moving your manufacturing to China
  
• How clear and concise communication can save you a lot of heartache
  
  

I hope you enjoy the episode.  Would love to hear from you if these episodes are helpful

In this week's episode, we touch on a somewhat sensitive subject – the issue of Accountability, or Who is ultimately responsible when something goes wrong?

Listen to hear some first hand stories where we highlight:

• The danger of not being clear in your instructions to the factory.
  
• The “Devil is in the Details!”
  
• How can you put clear instructions in writing and make them measurable?
  
• Knowledge is the key.
  

In this week's episode, I share some valuable insights and pointers that could really help you – especially if you are considering sourcing your product outside of China.

Listen to this real story  where we discuss…

• The “cost” of the product is not the most important thing.
  
• Failures are sometimes the best thing that could happen... initially.
  
• You don’t know what you don’t know.
  
• The Golden Rule is clear communication and knowing who you are dealing with.
  

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In this week’s episode, I share, along with my co-host Kevin, some valuable insights and pointers that could really help you – especially “When Inspections Fail.”

We spoke in general about Product Sourcing from China, services available in China, and how doing business in China works.  Some key points touched on:

• You can’t inspect quality into a product.
  
• It is better to catch a problem at the source (factory)
  
• What is the Best-Case Scenario when an inspection fails?
  
• What is “Commercial Release?”
  

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This week I was interviewed by Jim Palmer from Dream business radio. I thought you might like to listen to the interview... you might pick up some good advice, insights, and pointers...

Of course, we spoke about sourcing from china, services available in china, how doing business in China works.

Hope you enjoy it...

Just some of the questions answered:

• How entrepreneurs expand businesses.
• How do you find ideas in China?
• Do you have to go to college to learn the business?
• What are the biggest challenges for importing products from China?
• Why middlemen/agents are outdated.
• Some intellectual property tips and building trust with suppliers... we went deep!.. (actually more than just tips, we went deep!)

Here's the third and final part of my interview with Kunle Campbell in the 2x eCommerce podcast.

If you haven't listed to parts 1 and 2, go back and listen to them before listening to this.

This was the last major question of the interview, and he asked me:

"What's the best way for eCommerce entrepreneurs to protect their intellectual property?"

Now, if you've listened to our previous episodes, I'm sure you already know the answer...

...because I talk about it so often.

However, if you're new to the show, my answer to Kunle's question could be a total game-changer...

...and potentially save you tens, if not hundreds of thousands of dollars over the long term.

Helpful Resources

Part 2 of 3 of my interview on the 2X eCommerce Podcast by Kunle Campbell.

It's a show for entrepreneurs interested in eCommerce tips, strategies, and best practices.

I've split the recording into 3 parts.

In last week's episode, I gave his audience a description of what it is we do.

And I explained why attention to detail is so important when you're sourcing from China.

This week, you’ll discover:

• How sourcing from China is changing and what to expect in the future
• How to navigate a trade show like a Pro.

If you’re short on time or can’t listen to the entire interview, I’ve had it transcribed for you.

Helpful Resources

A few weeks ago, I was invited on the 2X eCommerce Podcast by Kunle Campbell. It's a show for entrepreneurs interested in eCommerce tips, strategies and best practices.

Talking to Kunle was great because he asked the right questions. It allowed me to cover some of the essentials you need to know if you’re running a business with plans to source products from China. In this podcast, you’ll discover: 

• What I believe is the main mistake startups make when sourcing products.
• What’s changing in China and what’s in store for the future (hint: look outside China).
• How I feel about the Trump-China tariffs.
• My best tips for how to make the best of your visits to trade shows.
• Why you should register your intellectual property in China.
• And much more!

If you’re short on time or can’t listen to the interview, I’ve had it transcribed for you.

Helpful Resources

I recently had the pleasure of interviewing one of our clients, Robert. His company sells designer lighting in South Africa.

Robert's company was the sole agent for an international lighting brand. They sold it successfully for over 10 years until the principal suddenly decided to drop them.

This left Robert in a predicament. A large part of his business was now gone and they had to make some changes fast.

After a mutual friend introduced us and we had a long chat about his options, Robert decided to take a trip to China.

Nearly 2 years after that first "expedition" to China, I sat down with Robert to talk about his journey into sourcing from China, what his experience was like, and his plans for the future of his brand.

In this podcast, you'll discover:

• The power of building a brand in China
• The challenges you'll face sourcing products and customizing them with Chinese manufacturers
• The recipe for success: what it takes from you that many business owners ignore
• The reality of the journey vs. your expectations
• And much more!

If you're short on time or can't listen to the interview, I've had it transcribed for you.

Helpful Resources

What happens when you're defrauded by your manufacturer?

How do you handle it?

How do you prevent it from happening?

What are the best practices?

Here's a true story I wanted to share with you.

It happened to us the other week.

In this episode of the podcast, you'll discover:

• How expensive being defrauded can get when sourcing from China.
• How you can expect some Chinese Manufacturers to behave in situations of fraud.
• What you should expect as a buyer doing business in China, because this situation never changes.
• The best practices for mitigating or, hopefully, eliminating the risk of fraud.
• And much more.

Helpful Resources

As a business owner, I often wish someone had given a crystal ball years ago saying,

Well, I'm going to save you that fortune now.

In my client training, I share so many case studies where I go into detail about real situations that have happened to me, to friends of mine, cases we're defending, etc.

This is a real, first-hand experience. It's cost us tens of thousands of dollars.

And the reality is I could have stopped it all.

I could have prevented it all if I had spent a couple of hundred dollars on registering my trademark certificate in China.

And that's what I want you to do.

In this episode, you'll discover:

• The 3 main cases when registering your trademark in China is necessary
• The nightmare scenario you don't want happening to your brand online
• The easy way and the hard way to defend your brand and trademark in China
• International IP - is it valid in China?
• And more

Helpful Resources

In this episode of the GlobalTQM.com podcast, I had the pleasure of interview my business partner and mentor for over 20 years, Yaron Remen.

He’s a serial entrepreneur with the superpower of starting companies, growing them big, and selling them off. 

To date, he’s sold 9 multimillion dollar companies!

Yaron and I have been doing business a long time in China. 

And from time to time we like to reminisce and laugh about the good old days of doing business with the Chinese. 

(You’ll understand why when you listen to the episode.)

I sat down with Yaron for this recording and asked him:

“Why do we even bother with contracts in China when they’re so hard to enforce?”

In this short yet knowledge-packed episode, you’ll discover:

• Your secret weapon if you want to enforce contracts with Chinese manufacturers
• What purpose a contract serves if you don’t have the means to enforce it
• Why doing business in China is just like doing business anywhere in the world
• The one sentence you need to add to your contracts to eliminate the “it was just a misunderstanding” excuse manufacturers like to use
• And more

Helpful Resources

Transparency and accessibility.

That's what the internet brings to the table.

It's easier than ever before to access products and suppliers from all over the world.

This increases competition and puts downward pressure on margins.

How are you going to stand out from your competitors?

How are you going to stay profitable in the long-term?

You'll have to become more efficient...

Cut down lead times and be faster to market...

And always be ahead of the curve with better or more unique products.

In this episode of the podcast, David talks about the (positive) effects of E-Commerce and Digitization on the sourcing game.

You'll discover:

• What today's buyers are really thinking when sourcing products (no, it's not "how cheap can I get this?")
• The one key factor your business will live and die by...no matter which marketplace you're selling on.
• How to take advantage of the "shared brain" of a buying team so you can be more productive and efficient.

Helpful Resources

So you've just hired a 3rd party sourcing agent to help you with your manufacturers in China.

Now you can sit back and relax, right?

No more problems or delays, right?

WRONG!

The truth is, a sourcing agent may not the be-all-end-all solution for your business.

Yes, they can and do add massive value...IF you use them correctly.

In this episode the podcast, you'll discover:

• What sourcing agents can help you with (and what they can't help with)
• The big mistake business owners make after hiring a sourcing agent
• The #1 value-add a sourcing agent brings to your business
• How to get the most out of working with your sourcing agent
• And more!

Helpful Resources

Why is product differentiation more and more important?

Online shopping has given your customers have all the power.

Today, in just a few minutes they can compare products or the same product from multiple suppliers.

They can buy from anywhere in the world and get their purchased delivered in a few days.

In a world of "infinite" choices, you need to give people a reason to buy from you.

The better you can identify what's unique to your product, to make people's decision to buy from you easier, the more sales you'll make.

In this episode, you'll discover:

• Misconceptions about product differentiation.
• Why branding is the best way to differentiate.
• Why you need to protect your brand internationally

Helpful Resources

In this episode, David covers:

• 5 tips to improve your RFQ communications with suppliers
• How to match what's in your head with what the manufacturer can actually produce
• How the buying/merchandising role has changed because of e-commerce and online business
• What skills modern buyers/merchandisers need to stay competitive in a world of online marketplaces and global FBA fulfillment centers.

Helpful Resources

Would you like your suppliers to:

• Take you seriously from day 1?
• Prioritize YOUR orders over their other clients?
• Give you "first dibs" on buying their latest products and innovations?
• Improve your own products so you have an edge over your competitors?
• Understand your operating procedures, documentation and shipping needs?
• Give you much better samples so you need fewer iterations and can start production faster?

If your business depends on you successfully sourcing from China...

...I imagine your answer to each of these questions is an emphatic, "YES!"

Well, you're in luck.

Because in this episode, I'm going to show you how to get all of those things, and more.

Helpful Resources

Back again with another segment from my webinar with Tom Pirenne of ShowSourcing.

In the last episode of the GlobalTQM podcast, Tom and I talked about whether Trade Fairs will exist in the future.

The answer was a resounding, “YES!”

Now that’s clear, let’s say you decide you’d like to fly to China to attend your first trade fair.

How should you prepare for trade fairs so you have a fun, comfortable trip that’s also fruitful?

That’s what we’re going to cover in this episode.

15-Point Trade Show Checklist

1. Install a good VPN on your computer before you fly over.
2. Install Didi on your phone. It’s the Chinese version of Uber.
3. If you use local taxis, have your concierge write down the hotel address and save a photo of it on your phone.
4. Pre-register for the big fairs and get your badge in advance. You can use the invitation letter to apply for your Chinese visa.
5. Do some research ahead of time to figure out which suppliers/ manufacturers you’re going to visit first.
6. Wear comfortable shoes. You’re going to be doing a LOT of walking.
7. Ask your hotel concierge where the nearest foot massage parlor is because it’s the best way to relax after a long day of walking.
8. Bring a lot of business cards.
9. Print business cards with contact info you'll only use with Chinese Manufacturers.
10. Research the type of products you’re interested in.
11. Take one or two power banks with you for your electronic devices.
12. Don't rely on your memory. Take pictures of everything.
13. The afternoon of the last day of the fair is the least productive time to attend.
14. Start your post-fair work before you leave China.
15. Send out RFQs at night when you're back at the hotel.

Helpful Resources

This episode (and the next few episodes) of the GlobalTQM podcast will share segments of a joint-webinar I hosted with Tom Pirenne of ShowSourcing.

A few weeks ago, Tom and I were having coffee and he asked me: "Will Trade Fairs exist in the future?"

I admit I hadn't really thought about it, so it prompted a good discussion.

That's what I hope we can convey to you today.

I've been doing business in China for 20+ years, so I really believe trade fairs will be around for a very long time, and that they're the best way to build long-term relationships with quality suppliers and manufacturers.

10 Reasons Why Trade Fairs Aren't Going Anywhere

1. Trade fairs come with a significant added value over online marketplaces
2. Face-to-face interactions with manufacturers beat any other form of communication.
3. You can have lengthy discussions with dozens of suppliers to get all the information you need.
4. Manufacturers debut their latest designs, ideas, etc. at trade fairs.
5. You get to inspect hundreds of products in person.
6. You can take advantage of peer support and networking with like-minded business owners and manufacturers.
7. Attending a trade fair lets you focus completely on product research and development for 2 to 3 days..
8. Being at the trade fair, walking around the booths, talking to people, checking out the products, are a huge source of inspiration.
9. Building business relationships after the trade fair is much easier because the initial interactions getting to know each other are out of the way and you can get straight to business.
10. Suppliers and manufacturers will be much more open to talking to you via WeChat and Skype, and generally more generous with their time, because you've taken the time to meet and get to know them.

Helpful Resources

When you've put 6-months and thousands of dollars into a business idea and ultimately have to give it up...

Have you failed?

This kind of situation is something all CEOs face at one point or another.

And if it hasn't happened to you yet, IT WILL.

In this episode of the podcast, David Hoffmann teaches you how to think through these decisions.

And avoid situations that can leave you worse off than when you started.

You'll discover:

• If you follow the process you'll always win, right? WRONG!
• What to do when you just can't get the numbers to work.
• The right questions to ask to figure out what the hell went wrong.
• When to decide, "it's time to quit."
• How to think like a real CEO.

Helpful Resources

When dealing with Chinese manufacturers, attention to detail will make, or break you.

Delays and hidden costs all add up.

They can vaporize your profit or, in the worst case, you may take a massive loss.

In this episode of the podcast, I'll tell you how to minimize production delays and run the numbers right, so your business can operate profitably. 

You'll discover:

• The single biggest reason for production delays most businesses overlook.
• Why there's no such thing as "avoiding delays" when manufacturing in China.
• What to keep in mind when negotiating production and delivery dates.
• What to include in your invoicing/shipping documentation so your goods don't get delayed at customs.
• How to protect your investment once you've paid for the finished goods and they're in transit.

Helpful Resources

Have you ever been to the Canton Fair?

It’s a trade show that happens every year, in Spring and Autumn, in Canton (Guangzhou) China.

I'm going to tell you how to navigate the fair, or any Chinese trade show for that matter, like a pro.

You'll discover:

• Exactly what you need to bring with you when you attend the fair.
• The first question you need to ask a manufacturer if you're interested in a product.
• How to get the manufacturer to take you seriously.
• How to escalate the discussion once you've established their credibility and capability.
• Exactly what NOT TO DO (or say) when talking to manufacturers.

Helpful Resources

In this brief yet impactful episode, David gives you tips on how to...

• protect your intellectual property...
• make sure your products comply with government or commercial regulations, and...
• negotiate payment terms so your investments are secure.

You'll discover:

• Why NDAs and confidentiality agreements don’t always work.
• How common sense and prudence can keep your intellectual property safe.
• What you need to ask manufacturers to give you to make sure they can make safe and compliant products.
• The chicken-and-egg scenario of payments, and how you can manage payment terms as a buyer.
• How to protect your deposit and milestone payments.

There are thousands of factories in China. We’ve dealt with loads of them for our clients.

How exactly do you vet manufacturers and choose one that’s the right fit for you?

That's what we're going to teach you in this episode.

• How to present yourself so the factory immediately takes you seriously
• How to guarantee you get accurate information when communicating with the factory
• How to know if they're a big factory or a small one
• How to learn if the factory is able to produce according to strict standards
• How to decide between a manufacturer or a trading company

Chinese culture, and Asian cultures in general, are very different from quote-unquote Western cultures.

That is, North America, Europe, and Australia.

Not understanding this, or worse, refusing to deal with the Chinese in a way that’s comfortable to them, can lead to huge problems for your business.

In today’s episode, David’s going to tell you about common Chinese cultural differences and how you can work around them to get the best outcomes.

In this episode, David covers the #1 risk to your business when sourcing from China:

Not specifying what you want down to the last detail.

And he gives you 11-steps to overcome this risk.

So you can get your goods exactly how you want them, every single time.

When sourcing from China, how do you actually get what you want?

The key is effective communication.

And in this episode, David tells you exactly how to do it.

He also gives you tips on how to overcome any language barrier between you and your manufacturer.

And avoid getting caught off-guard by commercial acronyms and jargon.

In this episode, David tells you about the hidden costs of importing from China most businesses overlook.

First up, the lowest priced manufacturer isn’t all it’s cracked up to be.

Also discussed: have you included the costs of product returns and breakage in your pricing?

If you haven’t, David tells you why it’s important, and why you may need to rework your prices sooner rather than later.

Hi, I'm David Hoffman, CEO of globaltqm.com...and this is my podcast.

This is episode zero and I'm going to introduce myself and the podcast.

I tell you about my business background in China...

...why I created this podcast...

and what you can expect from it.