The process of choosing a CNC machining supplier in China is very challenging, especially for novice procurement personnel but also for managers with experience. The way the Chinese think, work and choose to present themselves is different from what we know in the Western world. The online network is flooded with suppliers that offer CNC machining services in China.
For example, a search on the ALIBABA website for the word “Machining” yields results of about 2,000 suppliers and 1,000,000 products from China. How can a purchasing team choose a reliable machining factory from a list of 2,000 suppliers? Moreover, are the suppliers listed there really manufacturers or trading companies that in some cases is a person who works with a laptop from a 1.5X1.5 meters small office?
These questions always arise when looking for new manufacturers in China and are undoubtedly essential questions for the success of the procurement. In this post, I will share with you 13 tips for choosing a CNC machining supplier in China based on the experience I have gained working with Chinese suppliers in the last 20 years.
It is highly recommended to visit the factory before starting cooperation, and in any case, it is necessary to ensure in advance that the supplier allows a visit to the factory. Buyers who search for manufacturers in China online usually reach a trading company. These companies are a separate business entity from the manufacturer, and in most cases, the owners of the trading company and the owners of the factory are different people.
The Chinese trading company will try to persuade (and succeed most of the time) the purchasing that they buy from a manufacturer, but in practice, they buy from a middle man. Purchasing machined parts from a trading company may create problems in the future that the customer is not even aware of.
Remember, it is always better to choose a Chinese machining supplier who has testimonials from customers and agrees to contact them for verification. These must be authentic testimonials with full customer details. General recommendations without customer information are worthless.
A Chinese supplier with recommendations (even if more expensive) is better than choosing the cheapest supplier that doesn’t provide a list of satisfied customers.
Chinese vendors do not disclose customer names, but as a potential buyer, you can insist on asking the vendor to provide contact details with contact information as a condition for starting cooperation.
Payment terms of machining suppliers in China to new customers are usually 50% down payment and 50% balance before delivery. Find out if the supplier agrees to payment terms of 30% down payment and the remaining 70% will be paid against a bill of lading copy and after an inspector has approved the goods on your behalf in China.
It is highly recommended to ask about a quality inspection before shipping even if you are not going to send an inspector or hire a company that performs quality checks. Ask for an exact address of the factory to which you will need to send the inspector. If you get vague answers, you can understand that the supplier does not manufacture himself but buys from another factory.
Avoid suppliers who ask for a 100% payment before starting production, unless it is a small work worth less than $ 1,000. For small orders, there is no point in making two bank transfers. If the supplier works with PAYPAL, it is not a problem to split into two payments because the PAYPAL payment process is fast, and the transfer fee is a percentage of the transfer amount.
Find out exactly where the factory is located. China is a huge country, and sometimes the Chinese suppliers only mention the province’s address. It is essential to know which seaport is the nearest to the factory and what is the distance to the port because it affects the cost of land transportation in China.
If you work with several manufacturers in China, you should try to source a new factory in the same region(if possible) so that you can combine shipments, thus significantly saving freight and import costs.
You should also find out where is the nearest airport so you can know how much the factory is accessible for future visits. If the factory is located a few hours away from a major city, your quality inspector will probably stay overnight in the factory area, so prepare to pay also for a hotel.
If you are looking for a machining supplier in south China, check out this post: Why Should You Source CNC Machining Services In South China?
It is advisable to check in advance whether the supplier is willing to provide samples for approval and what is the cost if there is. Factories that are interested in working with new customers will usually offer samples free of charge or with a minimal fee if they are convinced that you are a serious customer.
On the other hand, trading companies always ask for cost on samples and usually excessive prices. Chinese manufacturers do not like to work with Chinese trading companies, so they ask them to pay for samples. The trading company adds a profit, and eventually, the customer receives a high price for a few pieces.
Trading companies that offer a high price for samples sometimes offer a refund when placing an order but do not be tempted to do so; they may send a poor quality sample and never give any refund.
If you purchase independently from China without an agent or employee in China, the service of the supplier is a very critical part. You make remote cooperation and do not want to get to where you need immediate answers, and there is silence from the other side.
It is essential that the supplier has a professional English speaking sales rep that responds quickly. At the pricing stage, you will be able to see how the supplier is doing, but of course, the real test will be on the first order.
As a rule, it is not advisable to start a contract with a new Chinese supplier under time pressure. It is best to start with simple work where the schedule is quite flexible. It is imperative to check the delivery times for samples and mass production, and what the supplier’s commitment to meet delivery times.
In the event of a significant delay, will he compensate or send goods by air freight at his own expense?
Delivery time depends on order quantity, part size, part complexity, type of raw material, availability of raw material, tools required such as extrusion die for aluminum extrusion, and other factors. Usually, for standard parts with raw material available in stock, the delivery time for samples is 10-15 days, and the delivery time for the mass production is 20-25 days.
Also, when ordering a part for the first time, take into account that the approval process for the samples will take approximately 6-10 days. Shipping the sample with courier takes 3-4 days plus a few days for the tests and approval of the product engineer.
Regarding delivery times keep in mind that the production of a first batch may take a little longer and therefore, it is essential to take a safety factor of a few days. The factory has produced samples but has not yet done mass production and so problems may arise. In the next production batches after the first mass production, the factory will be able to work more efficiently and shorten the schedules.
The minimum order quantity must be clarified. In principle, a machining manufacturer does not have a technical problem to produce one piece or a few pieces, but the cost is very high because it is necessary to set up the CNC machine. The real question is the availability of raw material and the MOQ of raw material suppliers.
Machining suppliers purchase raw materials from local suppliers who have a MOQ depending on the type of raw material. For example, to buy stainless steel 316 in a specific size and shape, you may be asked to place an order for MOQ of 5 tons. For aluminum extruded profiles, there is usually a minimum order quantity of 500 kg per order.
To check with the manufacturer practically what minimum quantity, you must send him the production drawings so he can understand what material should be purchased for the production of the parts.
In case the Chinese supplier tells you that he has a minimum order quantity of $5,000, you should check carefully that this is not a trading company.
Before selecting a machining supplier, you should ask all candidates to send paperwork such as licenses, company registration number, ISO certificate, samples of COC certificates, raw material certificates, and dimensions inspection reports.
Some of the suppliers’ paperwork is in the Chinese language, so it is recommended to hire services from a Chinese company that can verify the paperwork, such as checking the company registration number and factory address to make sure it is not fake paperwork. With this check can you immediately filter companies that do not look reliable.
You must ask the supplier whether he is obligated to comply with all the drawing requirements and his responsibility in case he sends disqualified parts. Will he provide replacement parts or refund?
It is critical to get a clear answer! Honest suppliers stand behind the commitment and will bear a loss if they made a mistake. This is in contrast to most trading companies that do not think long-term and prefer to lose a customer rather than lose money.
In any case, it is recommended to build cooperation with a Chinese processing supplier gradually, start small, and grow slowly. This way, you can avoid a significant loss due to a lack of experience working together.
When you start working with a new CNC machining supplier in China is recommended to perform a quality inspection before shipment. The ideal situation is that you arrive with a quality inspector for quality inspection at the factory. If this is not possible, you should send a third party to perform a quality inspection before shipping, especially at the beginning of the cooperation.
Do not start cooperation with a Chinese supplier who does not accept inspection of the third party before shipping. This is a warning sign, and he probably has a good reason for that. There is no point in asking for samples even if they are free, skip it and go to the next supplier.
You may want to ask the provider a video call in “surprise,” that is to arrange a short call via Skype at short notice so you can see the factory through a camera. Today everyone has a smartphone and an internet network everywhere so a real manufacturer will have no reason to refuse this request.
In the call, you will be able to get to know the salesperson you correspond to and see the factory. This call will give you an essential impression with whom you are dealing with.
Quality inspection is a critical step for suppliers of machining parts. CNC machines are high accuracy machines, but there may always be errors in the process, and quality checks are required at the end of the process and also during production processes.
Check whether the supplier sends testing and quality reports before shipping and what the paperwork includes. Does it include only a dimensional test report? Does it include paperwork for the raw material and coating?
You can request samples of other customers’ quality reports.
Finding a reliable and cheap CNC machining supplier in China is a process that takes time and requires experience. The online networks are full of Chinese machining suppliers, some offer any price to get work, some are unreliable trading companies, and some are reliable and ethical manufacturers.
The sourcing process is done remotely without your physical visit (at least at the beginning of the road) and with many obstacles, and therefore, the selection is difficult.
I hope that in this post, I have been able to give you some tools to help you search and choose a CNC machining supplier in China.
