China Sourcing and Supply Chain Prep for Ecom Founders

Foreign.

Welcome to Supply Chain Moves, the podcast where we break down the intricacies of supply chain management and share actionable insights to help you stay ahead of the game. I'm your host, Lara, and today we have a special episode dedicated to preparing for a visit to China, a critical hub for global supply chains. Whether you're sourcing new vendors or managing existing partnerships, doing audit or negotiations in person, a China visit requires thoughtful preparation and strategy. I'm excited to be joined by two experienced supply chain practitioners who will be heading to China with me to share their insights and advice. Liza, as you've seen in the previous episode recorded actually in China, we've done a long recording in our robes when we were in China last April. May is here with us again because we're doing our trip number two this autumn and now is together we're traveling with April, an expert working for seven years as a supply chain manager and she will be joining us this autumn trip. Together we'll guide you through the must do's before you embark on traveling, processing your visas, booking your tickets, and we want to make sure that we can give you the best practices, the learnings that Daisa and I had last trip. And at the same time, we applied that learnings to our preparation, this travel so that we can ensure that we are maximizing whatever cost that we're going to spend for our China visit. Part two Right, before we, before we dive in with my questions, Glyza and April, could you just briefly introduce yourselves and share your background in supply chain, particularly your experience with international vendor visits, especially in China.

Hi, I'm Liza, I'm the CEO of MOVE supply chain. I've been with. Well, MOVE is almost a year now, but I'm a supply chain practitioner since I graduated college and I think that's more than 15 years now, so just do the math. But in terms of my experience visiting clients in China, that was our first. Yeah, I was with Lara last April. We visited different areas of China, specifically their plants and offices. So how would I explain this part? It's really different when you are there in the ground knowing how the, the actual facility works. So it's, it's a totally different ball game when you see how your products is being made. There will be some so much opportunity for learnings, negotiations and potential savings. So that's what I am really excited especially for our second leg because it's another great impact on savings and cost optimization for our clients. So.

Yeah, yeah. And I think we are going to share the link of the previous Podcast that we've recorded. In that recording, Liza, you've mentioned your experience as well doing the visits, international visits as In Brazil even 15, 10 to 15 years ago. True.

So I mentioned that before. So the China trip was like a refresher for me because I've done that already. When I think back in 2013, 14 I visited United States and Brazil for a different company. But yeah, it's a similar experience but now that we're servicing DTC and non food it's a different learning experience and I'm excited for this upcoming trip because it's not gonna be just the two of us. Lara, that's one of our learnings from the last that oh my goodness, you have to have a team with us. It's. It's just we didn't.

Don't tell them what happened, don't tell them how busy where because there's no time to back out. Yes.

But yes, it's gonna be so fun because Lara and I you had so much fun just the two of us. What more it's going to be the whole like almost like half of the move supply chain team will be going. So yeah, yeah.

April, I believe this is your first time in China but not international traveler. Can you share more about your supply chain experience and probably if any experience in plant visit in general?

Yeah, yeah. So hi, I'm April. So yes it's my first time in China but yeah I travel but I love traveling to outside the Philippines. So I have seven years experience. I am the supply chain manager for this which is particularly with international clients within E commerce side but a total of 10 years including my on site so I specialize in managing the entire supply chain process from supplier and product sourcing to inventory management. So I also have experience in a new business development where I help companies build operation from ground up which is I focus on the process for all the sort of sourcing of new products. So in China I think this is my first time so I'll be maybe I'll be focused on visiting how supplier factories wherein I will observe the production process. Yeah so that's my. I think that's why I'm excited about for China for sure.

If you're, if you love, if you love traveling and this is like I know this is work but at the same time meeting other people, meeting the vendors that you've spoken to for the past months and then communicating with them developing product. It's a very for Guysa and I we both agree that it's very fulfilling to talk to this to see them in person. It's like yes, meeting a friend that you've, that you've known for a very long time. But actually first time meeting in person.

Yeah, we're very, especially, especially when I, if I will be meeting our, one of our clients during the plant visit. So yeah, that's one, that is one of the most.

Exciting.

Exciting, exciting. Yeah.

Okay. So I, I, my next question is probably the question of our listeners is why, why visit? Why visit China? And we want to give them two different perspective here. One perspective of Gleza doing international vendor visits since more than 10 years now and doing it again now and for April, the perspective of handling DTC heavily DTC clients and why this is important with them. And then the reason why I wanted to give two perspectives is because Gleza in our work before vendor visit is non negotiable. It's a requirement. We don't add them or we don't send our PO if we don't have the audit, the vendor visit, the meetings. But now it's like we can order right away, we can start our business right away even without the visit. So that's the two perspective that I would like to share. So if you can share Gleiza, why visit China?

Actually yeah, because it's since the pandemic, right. It's like I think that's where when the norm of doing everything online started. So I understand most of, of the clients or the dtc, you know, owners, business owners, just, they just let it go. Like I can still manage my business or the operations of the company without seeing the actual vendors. Right. So I think that's, that's one of the main, like that's when it started. But I see when we started doing supply chain Lara Back in 2020, it was a little difficult because we are used to doing the actual visit and actual work on the ground. And it's like there's all, there's really what they call that adjustment in terms of how we communicate. It's like more effort, more detail, clear conversation or communication. There's a lot more effort comparing to having, you know, you can just go straight to the plan and talk or office and talk to, to the vendors. So I think this also applies up to now. I can still attest that it's, it's necessary even if it's not like the normal structure. Yeah. Ten years ago. Yeah. We really need to see what's happening there to have it, to see it firsthand. Will have, will you will have a different perspective. One example Is there's this client that we're handling that's been with this client, this vendor in China for the longest time. Like they have a good relationship and we don't understand why, for example, this product, they cannot do it right. They cannot pass the quality that the client wants. And when the, the time that we saw the actual operation, we. And they explained again because they keep on explaining, but when we saw the actual production line, that's why we understood. When we understood that, okay, they're really not capable of doing this. It's really hard to do this small product with this kind of details. And that's how we explain to the client. So there's really a gap I can say that we can bridge once we go to the actual plant and visit the vendor. So it's the gap for me.

Yeah, you've shared a very important point, Liza. We're in before it's like monthly you're in with your vendors or. Or every production you're with your vendors. I don't think it's ua. Yeah, even. Sometimes I even. Even collect the, the. The package myself, the delivery and I'll deliver it in our warehouse. That's how close I work with our vendors before. But I think we are. We are getting. We want to still apply visiting the vendors, but not as much because we were given a lot of improvements right now, like AI tools, communication tools and other support that can lessen the requirement to visit and travel. But at least there's like at least visit once a year, twice a year, and not as much as monthly. So it's less requirement. And for you, April, since you've been really handling DTC clients right now, why do you think visiting China is important for the clients that you're handling?

For me, I think China is a country renowned for its remarkable growth and innovation. So we know that China right now is a global leader. So it's an opportunity for us to. To check the manufacturing plants, which is. Which have an invaluable insights to us for their technologies, their operation, which has made how China as a global leader. Right. So for me, this visit for China manufacturing is opportunity for us to explore the partnership with our suppliers and also deepen our cooperation and learn as well for China culture and their industrial expertise.

For me, yeah.

And I think what's important to note here for our listeners is it's not just about visiting your vendors at this point. It's also maximizing that There's Canton fare. So we're scheduling our vendor visits during the fair so that we can maximize our travel if there's a Canton Fair schedule which is three phases. Phase one starts October 15th and then phase two, phase three, which ends November 4th. In between those phases, we will be traveling to visit our, our vendors. So it's like dedicating time in Canton Fair and then in between the gaps, you'll be visiting your vendors. And that, that way you could maximize the cost and the effort that you're putting for, for this travel. Okay, my next question is a little bit for me, I'm very curious to hear coming from someone that hasn't been to China yet and coming from Gleisa who has been there. Because we, we. We've seen, we have the experience before. So the question is what are the top three three things? Supply chain or what are the top three things that you, April and Glyza should prepare before heading to China? What are the specific documents? Information, logistics and any essential whatever is the top three for you? And I wanted to hear April first because she hasn't done it yet. And then after that we want to hear your.

I think my top three if first is my passport. Yeah, of course my invitation and yeah, my Canton Fair invitation. I think that is so important. Number two, I think it's my, my otd. So I think I asked this to my clients. So what is if there would be something we have to prepare.

I knew it.

Yeah, I prepared my OTD already and I think it' third is my facial with my eyelashes. That is an honest answer, actually.

Yeah, especially an answer you have to prepare yourself.

Like your physical.

Yes, yes. And my English for Chinese.

It'S. It's the English that we, we're not practicing so much, but it's a different kind of English that, that we need to bring in there. Yeah, that's a very funny, funny answer, April, because we, when we were doing our first time, it's actually, it's really a part of, of your preparation. Especially the OOTD is going to be really helpful. Be walking a lot. So if Gleiza had this mistake last time that she, she brought her very expensive shoes that is not comfortable. So in, in the middle of Canton Fair midday, we're looking for sandals or sleepers even.

I, I want, I wanted to go barefoot. So yeah, I just wanna. That's a good point. OOTD is good, but make sure it's comfortable. Actually that's, that's my first answer. Comfortable clothing, especially for plant visits and Canton Fair. It's okay if you want to have your OOTD for the gram and we will have merchant.