When importing from China, it’s critical to understand exactly how long it will take to get your goods from there to here. To calculate your lead time, you have to determine 1) how long it will take your supplier to produce your goods, and 2) what your expected transit time is. Not having your products in stock when you need them can cost you. Mastering Just-In-Time inventory management can help… if you anticipate the potential mishaps that may occur along the way.
Predicting The Future
To ensure that you have the goods that you need in time, you generally have to order them 6 to 8 months in advance. With such an extended lead time, it can be tempting to order far more product than you anticipate… just in case.
Creating a large inventory can be dangerous. You’ll need a lot of cash to buy and hold a year’s worth of inventory, and your cash flow hit can be fatal. Furthermore, there’s always that chance that you’ll get a shipment of bad product — or your shipment will get tied up somewhere in transit — putting your entire investment at risk.
Timing Is Everything
No matter how well you plan, there is the potential that things may go haywire. You may calculate precisely how much product you need and exactly how long it will take to arrive, and then reality steps. Your best estimates cannot anticipate natural disasters or port strikes, for example.
The Best You Can Do
Knowing how much product you need and when should be your focus. That, after all, is your business. Knowing the suppliers and their lead times is better left to the experts. Walker World Trade has been in the business since 1936 and knows how to efficiently source and import products from China.
The best importing decision you can make is to trust us. We will find reputable suppliers, determine transit times, and manage all of the complicated steps involved in moving the product halfway around the world.
Don’t begin your importing business until you’ve talked with the experts. We can help you manage the complexities of paperwork, overcome language barriers and locate trustworthy business partners that you can rely on. Contact Walker today to get started.