Sinordica Business Development

Sinordica
Business Development

Bringing businesses together

There are many advantages in doing business with China. The production costs are very low, the workforce is highly qualified. The quality of production processes and materials are reaching the Western standard and the infrastructure has improved tremendously in recent years. Not to forget the enormous market China and the ASEAN region presents with its joined population of over 2 billion. An increasing number of nordic enterprises are considering establishing business relations with China

A crucial condition for securing the success of your business aspirations in China is to make the important things right from the beginning. Assossiating with the right people from start is a necessity. This applies to both your business partners and the governmental bodies, since the two are often closely interwined.

We offer you following services within Bringing Businesses Together:
Sourcing (Procurement)
Selling Products and Services in China
Evaluating your current business partners

Sourcing (Procurement)

A short definition of sourcing is: To obtain parts or materials from another business, country, or locale. As for us we define sourcing in a broader sence. Sourcing is about consulting our clients through the whole process of establishing their own procurement routines when choosing to purchase from China. We find reliable and stable suppliers, with whom we help you to establish a good business relationship with mutual trust and understanding. Here are the services we offer within Sourcing:

We analyze your needs and operations

One of the first things to do is to build yourself a clear picture of why you want to purchase from China. Which products and services do you want to start with? What are the most important issues concerning logsitics, quality, leadtimes in your operations? How much controll do you need over the operations of your suppliers?

The output, a well documented report on the goal with approaching the china market, makes the guidelines for further steps in the work process.

Product and production specifications

We need to cover issues such as:
• materials quality requirements
• design characteristics
• intellectual properties to protect
• potential need of know-how transfer
• volumes to purchase
• the production process characteristics

A final report will cover a specification on what we should look for in China as well as a list of potential risks.

Market research

We proceed with a thorough market research in China. Following is included:
• A research on chinese manufactorers (product quality, production processes, capacity, reliability, prices, leadtimes, R&D-capacity, locations, financial credibility etc.)
• Analyses of the industry in China as a whole, future potential, trade assossiations, current export etc.
• Analyses of government regulations, certificates, administrative obsticles, governmental bodies and other interest parties.
The market research report will consist of an analyses of the most suitable suppliers in China with respect to your needs as well as potential risks.

Matching needs and opportunities

The next step is to match your needs with the actual opportunities based on an initial direct contact with the targets. It is of highest importance to ask the right questions as well as investigate thoroughly potential pitfalls with each of the targets. Following aspects get covered:
• Prices
• Freight cost and reliability
• Reliability and record track of the target
• Leadtimes and production capacity
• Cooperation forms
• Financial credibility
• Innovative capacity
• Communication issues
• Product quality
• Certificates
Finally we perform initial site visits to the factories of interest.
The goal with the report is to decide upon a short list of 2-4 most suitable targets to work further with.

Ordering a prototype

Next step is to ask for a prototype according to your specifications. The work process includes:
• Sending the precise specifications of the products to the targets including samples of existing model. All relevant additional information (like drawings, technical and quality specifications etc.) is also wanted.
• The molding gets executed by the targets. You receive a prototype for inspection.
• If the prototype is satisfactory we ask the targets to produce a sample (test) order.

The completion of every step is followed by a decision on wheather you should take the process one step further with the particular target or not. Tha goal is to obtain a clear picture of all relevant strenghts and weaknesses with each of the targets.

Negotiations

Following issues must be resolved:
• Defining and comunicating the exact requirenments on quality and quality control, quantities, design changes over time, leadtimes, certificates, packaging and necessary work routines between you and the target.
• Making a thorough cost analyses including additional information from the targets
• Evaluating the targets qualifications and helping you to make the final decision
• Writing a purchasing contract and translating documents of importance
At this stage a final decision should be made resulting in a contract with a target.

Establishing relations with proper authorities

• Identifying needs for and handling contact with the proper authorities.
• Establishing a base for a long term relation between you and the most important governmental bodies.
This actitity results in establishing a proper relation with governmental bodies as well other interest parties who can add value to your interests.

Ensuring effective quality control om long term bases

We help you to secure good quality controll routines including:
• On-site Inspections
• Pre-Purchase Inspections
• Pre-Shipping Inspections
• Surprise Inspections
• Regular Inspections
The goal is to enable maintaining certain qualitative standards on the long run.

Freight and Storage

We maintain a close cooperation with a number of air freight, shipping and third part companies and are able to help you find the best of price, deliveries on time and handling of your goods. When choosing a freight/third part partner, we pay special attention to following:
• Presence and knowledge of the local market.
• Handling your materials flow with smart solutions including having alternatives for storage.
• Capability of helping with customs clearance, storage, quick and proper investigation of insurance issues as well as other administrative tasks.

Insurances and Risk Management

International business operations are rarely undertaken without risk. Political, business, legal, and mother nature contingencies must all be taken into account in managing risks effectively. We maintain excellent relations in the Chinese insurance industry, and provide risk assessment, insurance procurement, and claim services.

Setting up your Financial, Banking & Accounting Services

Handling financial and banking routines (payment transactions ect.) as well as accounting routines in secure way is a critical component of your business, particularly in the area of import-export operations.

Handling customs and other administrative tasks

When establishing a new business, there are always some administrative issues to be solved in an efficient way. We offer you assisstance in creating your routines for handling your paper work.

Translations

There is a lot of information needed to be translated. We do translations of general and business character. When it comes to translations of material of technical and juridical character we can find a competent partner to satisfy your needs.

Evaluating your current business partners

Our experience is that companies in the same industry have quite different experiences with their chinese suppliers. The outfall varies especially on the issue of quality of the products. Western companies having an active relation with their chinese suppliers consider the quality of chinese products as high as for those originating from the EU-market.

Another issue is that many companies get themselves engaged in business relations with their Chinese contacts without having done any research at all. Not to forget that the hierarchies in Chinese companies are often difficult for western people to understand.

We recommend you to get updated on your existing business partners, competition as well as potential suppliers at least every two years. China has a very dynamic ecomony and hence, this creates a need for keeping in touch with changes!

Anonymity

Using us gives you anonymity which could be a powerful cost reducing tool. We can act as your agent when negotiating or doing research on your existing business partners. We can act on your behalf and even as your staff in some other situations. Ultimately we are here to solve your problems.

Selling Products and Services in China

We analyze your needs and operations

One of the first things to do is to build yourself a clear picture of what is your goal of entering the Chinese market. What image do you want to build up and which market segments do you want to approach? What are the most important issues on logsitics, quality and leadtimes in your operations? How much controll do you need over the operations of your business partners?

In short we assist you in developing objectives for selling in China!

Market Research

We proceed with a thorough market research in China. Following is included:
• A research on chinese customers (needs, purchasing power, size of the market) BR> • Analyses of the industry in China as a whole, future potential, trade assossiations, current export etc.
• Analyses of potential strategic partners, customers and competition.
• Analyses of government regulations, certificates, administrative obsticles, governmental bodies and other interest parties.
The market research report will give a good picture of the market for your products in China.

Matching needs and opportunities

The next step is to match your needs with the actual opportunities based on the market research. It is of highest importance to ask the right questions as well as investigate thoroughly potential pitfalls with each of the targets. The goal with this activity is to produce a plan for the forthcoming work as well as having an answer to questions like:
• What is the target group?
• What is the budget for the project?
• What marketing and branding do you need?

Choosing your partners. Negotiating and signing a contract

Next step is to get in touch with potential business partners. You have to choose your sales, marketing and distribution channels as well as logistic partners.

Further, incentive-issues on partners are of great importance. Issues such as payment routines, commissions, risk transfers must be carefully analysed and discussed before signing a contract. A contract has to be written in such a way that your partners get the best incentives to sell as much of your products/highest margins as possible in the most efficient way.

Chinese companies frequently purchase foreign manufactured products and technology to incorporate into other products or manufacturing processes. This presents special factors to consider in contract negotiations.

Establishing relations with proper authorities

Freight and Storage

We maintain a close cooperation with a number of air freight, shipping and third part companies and are able to help you find the best of price, deliveries on time and handling of your goods. When choosing a freight/third part partner, we pay special attention to following:
• The potential partner’s presence and knowledge of the local market.
• Handling your materials flow with smart solutions including having alternatives for storage.
• The potential partner’s capability of helping with customs clearance, storage, quick and proper investigation of insurance issues as well as other administrative tasks.

Insurances and Risk Management

Setting up your Financial, Banking & Accounting Services

Handling financial and banking routines (payment tarnsactions ect.) as well as accounting routines in secure way is a critical component of your business, particularly in the area of import-export operations.

Handling customs and other administrative tasks

When establishing a new business, there are always some administrative issues to be solved in an efficient way. We offer you assisstance in creating your routines for handling your paper work.

Translations

Trust Services. Anonymity

We provide confidential, professional services under powers of attorney. This includes:
• document handling
• financial transactions
• Acting your agent when negotiating or doing research on business partners.
• Acting as your staff in some other situations.
Using us under powers of atorney could be a powerful cost reducing tool. Ultimately we are here to solve your problems.

Legal Issues

Besides some legal issues such as intellectual properties and contract signing there are some other issues to consider. Selling of products or technology in China raises some additional issues to consider such as letters of credit and dispute resolution.

Evaluating your current business partners

Our experience is that companies belonging to the same industry have quite different experiences with their Chinese suppliers. The outfall varies especially on the issue of quality of the products. Nowadays, those western companies who have an active relation with their Chinese suppliers consider the quality of Chinese products as high as for those originating from the EU-market. Hence, not being fully satisfied with the quality you currently get is a good reason for considering a new supplier!

Another issue is that many companies get themselves engaged inrisky financial transactions without having checked up their Chinese partners’ credibility and financial status at all.