I'm a buyer for a North American retailer and will be sourcing from China for several of our products. After some negative stories I've heard from peers in my industry, I feel I have to be very careful about finding the right supplier. How should I get started when looking to source and what should I be mindful of? Are there any special arrangements, strategies, or sourcing models I should consider? In general:

How do I initiate sourcing from China?

The international perspective

To start with sourcing from China, a proper local manufacturer is indispensable and it is advisable to conduct due diligence on the local manufacturer. The key areas of due diligence should include: 1) who is the owner of the local manufacturer; 2) whether the local manufacturer has the proper right to use the relevant land and factory building or buildings; 3) whether it owns the relevant manufacturing equipment and facilities; and 4) whether it holds a proper business licence or other required licences for manufacturing the relevant product (such as the manufacturing licence and hygiene licence required for manufacturing cosmetic products or food).