How to deal with foundry in China?
Some foreign friends
once asked me how to deal with foundry in China, so I think it is
necessary to share our experience about this issue.
Before you are planning to deal with a
metal foundry, I
think you have already seen their websites and already have a good
image to them. Then, you could deal with them by the following
1. Send enquiry to the foundry
You need to send photos, drawings, annual demand and other technical
requirements to the foundry, including the unit weight for rough
castings or machined parts. The requirements should also include
surface coating, painting, packing, heat treatment,
material degrees etc. In short words, provide all information in
your hand. More information will help the foundry to calculate the
detail production costs, then their quotation will be more accurate.
2. Negotiate payment terms and delivery
When you think the prices of some foundry are reasonable, then you
could negotiate the payment terms and delivery terms. Take our
Dandong Foundry as example, as for small order, such as several
tons, we normally need 30% prepayment (payment in advance) with
orders, then 70% payment after delivery with the copy of Bill of
Lading (B/L). As for the larger orders, normally 30% prepayment, 50%
after delivery, and final 20% within 30 days after acceptance. Of
course, the payment terms is negotiable.
As for the delivery, normally, FOB at some sea port in China, or CIF
at the destination port in the country of clients.
3. Place an order for samples
If your demand is large, then samples are necessary in case of big
loss. Normally, the foundries could supply the samples free of
charge if the sample is not very large. However, the buyers need to
pay the costs for casting
patterns. If the foundry is failed to meet the quality
requirements, and give up the project, then the buyers could collect
the patterns, or request some refund payment to the patterns. Of
course, it will not be a happy thing when this case happens.
4. Collect and inspect the samples
Normally, the buyers need to collect the samples, then inspect them
by their own engineers or third party inspection lab. This step is
important to establish a standard to the product quality. If the
samples are not acceptable, then the buyers need to instruct the
problems, and the foundry need to solve the problems, and remake the
samples until all aspects are acceptable and qualified.
5. Please an initial small order
Even the samples
are qualified, it will not mean there will be no problems for the
batch production. During mass production, the new problems will
happen. So, it is necessary for the casting buyers to place a small
order as for the initial trial, then they need to inspect the
quality to the castings, and check if all of the products are
qualified, and solve the new problems together with the foundry.
After that, the buyers could place more and more orders.
When you deal with foundry, you should have preparation to the
failure. Sometimes, the foundry can not solve the technical
problems. Making a new type of metal
casting is not an easy thing as you buy an existed product.
Of course, both casting buyers and foundries should have trust,
confidence and patience to each other, otherwise, the successful
cooperation will be impossible.