Successful cooperation stories-how we win our Singapore clients
If you are in bearing industry, you must know those top brands, while if you are in China bearing industry, you must have known that Luoyang city of China is the best place to get bearings. Luoyang, is the first and only city that creates the “China National Bearing Industry Standard”, and leading the first and irreplaceable role in bearing manufacturing and quality control since 1949.
You may have found many bearing factories and distributors here in this city, and have been feeling nowhere about making the best decision. While you may get some inspiration from the following successful cooperation stories.
For a mature bearing distributor or end user, every time when the purchaser gets a job, normally he or she collects information from at least 10 suppliers, and ends up with choosing 1 or 2. In this successful cooperation story I’m going to share today, you may find some common concerns.
1. To select the “real factories” out of the 10 potential suppliers
It is not easy for end users or distributors to find a good factory nowadays under the pandemic situation especially for some big projects, without site visits or assessment of production sites, work has become very passive. While thanks to internet and all kinds of social media with video function, factories are able to prove to their customers about their production flow, manufacturing abilities, processing equipment, scale, standardization of workers, all kinds of patents, R&D center and almost every aspect. Sending factory videos in real time or initiating a video call time to time is a very good method for clients to test if it is a real factory or a trading company even a middleman.
In China, bearing manufacturing belongs to the traditional industry, which means that seldom factories will completely spin off their international business department, and mostly they will set up the international business department based on the factories, to achieve implementation of unified rules and management systems.
CHG (was called as LYHG) is a medium-size factory with four independent workshops, and the most important is, the land of near 40,000 square meters is owned by CHG factory, all buildings and workshops and testing labs are invested and owned by itself, in another word, CHG factory has a very strong capital background, which will greatly ensure the factory's delivery capability, technology development capability, product quality control capability and after-sales service fulfillment.
2. To evaluate the qualification of technical R&D and processing ability also the scale of the factories
Even in China, the registered capital of an enterprise is not required to be paid up, but it is related to the maximum scope of joint and several liability of an enterprise, paying attention to an enterprise’s business license and registered capital in some degree can help you figure out what kind of service after sales you can enjoy, this will very critical when problems about quality occur after you applied products into use.
Patents and relative ISO Quality Management Certificates are also worth to be verified. These stuffs stand for the R&D ability and level of standardization of a developing factory. Numerous patents normally are created when a factory’s technicians and workers try to provide customers with better bearing solutions, and the innovative alteration or improvement will bring practically better and controllable operating performance.
The scale of a factory also matters when selecting a good supplier. Many trading companies or middlemen, they can only find some small and informal workshops to cooperate with, in this case, it’s very difficult for customers or distributors to track every processing procedure of the whole production flow chart, the source of materials is unstable and materials might be fake, inferior, used, returned, or scrapped which you will never know. While for a medium-large and powerful factory like CHG(LYHG), it is supervised by its famous big customers, government, banks, competitors and sense of morality brought by its excellent reputation.
3. Medium-large factories with economy of scale can bring better cost performance based on quality assurance
Not only in the ocean, also in the market, the laws of economics are at work all the time, “big fishes always eat small fishes”. Medium-large factories are able to reach economy of scale, and it will benefits the customers eventually because economy of scale helps factories decrease its cost, improve its efficiency, and provides with better prices.
While what you need to be careful about is, factories are very different from each other, so are their marketing methods and target customer groups. If we do the customers classification, customer or buyer market’s structure can be compared to a pyramid, at the top of pyramid, quality is far more important than price, the second level of the pyramid, quality is important as well as competitive price, and at the bottom level of pyramid, cheap price is the first concern.
For small factories or trading companies who want to win projects by comparatively lower prices, they have to figure out special methods to minimize their costs. As we all know nothing comes for free, to reduce cost, changing material suppliers and ignoring few necessary processing procedures, and even refurbishing the old products can help greatly decrease the cost. But the consequences of doing so are the lifespan of bearings will be shortened, and service after sales cannot be assured. In one of real repair cases, a huge fire happens in his aluminum factory because of wrong grease adopted and inferior rolling elements in bearings.
Once we go through the three tests as above successfully, our timely service for our Singapore clients is just like the icing on the cake.
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