What additional costs are involved in sourcing from China?
Buying from China can be a very good move, but in weighing up the options, consider:
The cost and time involved in shipping tooling or parts back to the UK. (FOB is free on board the supplier, meaning you will need to cover the cost of shipping)
Fedex and others typically ship parts from China to the UK in 3 days but cost is linked to size and weight.
Import duties are payable on all goods brought into the UK from outside the EU.
Be prepared to travel. It is always advisable to have visited the possible supplier both well before, and possibly during the project.
Watch the exchange rates. Tooling is usually quoted in US$ and this can work both for and against a purchaser.
When assessing leadtimes on tooling, remember that the clock is considered to start when the data, purchase order AND initial payment reaches the suppliers' bank account. This can easily add a week to a delivery schedule.
Watch out for holidays! Just because we are working in the UK, it is easy to assume that everyone else is too (eg Chinese New Year).
If in doubt, try using Plunkett Associates. We have been there, done it, done it and done it again!!