When entrepreneurs make purchases in Asia, they must be aware of the fact that the purchaser and the Asian supplier do not always have the same frames of reference. Therefore, the entire production process must be described for the supplier in careful detail.

It can sometimes be difficult to know if a supplier in China is serious or not. Start at home in Sweden to make a first choice among suppliers. Ask questions on e.g. turnovers. It is not good to be a small customer in a factory. It may happen that your order is not given priority to the same extent as larger customer orders.

• Production capacity. Has the factory capacity to supply new large orders?

• Technical Support. How many engineers are there in the factory?

• Experience. Has the factory produced similar products? What type of technology is at the factory?

• Export. Has the factory previously exported to the EU?

• Quality Control. Has the factory relevant quality certificates?

• CSR. Has the factory acceptable working conditions and terms of employment?

• Environment. Does the factory work with its own environmental impact?

Once you've chosen a number of factories that you think are good, it may be a good thing to do personal visits there. It is important to see the production with your own eyes. When you visit it is easier if there are many employees from the company to evaluate the factory. Ask many questions.

Once you have chosen which product you want to work with, be sure to always order product samples. Even changes in the product should be tested with new product samples. Build a long-term relationship with the company. Expand the orders when you see that the factory is capable of delivering. Make new orders when the first consignment is delivered and paid for. Remember that it is often useful to hire a lawyer when signing a contract.

                                                                            Tony Harkén