Many business owners turn to overseas supplier to control the rising production costs and to develop global competitiveness. But selection of overseas exporter or overseas supplier raises a number of issues for the importer such as language differences, payment methods and increased paperwork requirements. But always remember that the cheapest supplier is not necessarily the best supplier to deal with for imports. It is more important to find a reputable supplier who has the following qualities:
Though, with a little research and proper planning these challenges can be easily overcome. Further, during the selection process they should keep in mind the following factors:
Domestic trade is quite different from international trade, mainly when dealing with a country outside Asia, so an importer should consider the following factor before import.
For the avoidance of disputes and disagreements, a written agreement or contract should be drafted between both the parties.
Ask to see a list of customers that your potential supplier supplies and contact them for references. Do a credit check on the company, and if you can, spend the money to physically visit them and inspect their premises, plant, and the quality of their output. If you’re not able to arrange a site visit, at least insist on samples before placing your order. Confidential information about the exporter may obtain through the banks and Indian embassies abroad. The importer can also take the assistance of Credit Information Agencies for specific commercial information on overseas suppliers.
There are many sources of information about potential suppliers, including:
Many overseas suppliers have appointed their agents in India. The job of agents is to operate as an intermediary, facilitating the purchase or sale of products between domestic and overseas companies. These agents procure orders from the Indian parties and arrange for the supply of goods from abroad. It is advisable to import through such agents as they can be readily contacted in case of any difficulty with regards to quality of goods, payment and documentation, etc.