Value-Driven Sourcing: Mastering the RFQ in China

Having worked as a China purchasing agent for 30 years, I’m now approaching the age of knowing heaven’s will. Over the years, I’ve handled countless RFQs and helped many clients avoid pitfalls and save money. Today, with the experience I’ve accumulated, I’d like to share how a professional China purchasing agent can genuinely add value to your RFQ process when you source directly from China.

We’ve previously discussed how to obtain the most accurate quotes, so I won’t repeat that today. Let’s dive deeper into how this work is actually done.

I. Before the RFQ: Sharpening the Axe Before Chopping Wood

Before sending out the RFQ, what’s the biggest fear? It’s that you haven’t fully figured out what you want. At this stage, the first thing a reliable agent must do is help you think through every detail of the product and put it down on paper—what we call the product specification sheet.

This document is like the product’s “ID card.” Everything from dimensions, materials, and colors to functions must be clearly defined. I’ve seen too many clients start with just verbal descriptions, only to find that the samples produced by suppliers based on their understanding were completely different from what they had in mind. With this solid specification sheet, all suppliers are on the same page, and the quotes you receive will be “apples to apples,” not “apples to oranges.”

II. During the RFQ: The Devil Is in the Details, and Process Is Key

Crafting an RFQ That Leaves No Room for Ambiguity
Our RFQ isn’t just a few lines of text casually sent out. It must be like an “exam paper,” compelling suppliers to answer seriously. It must clearly include:

• Product Specification Sheet: The core—non-negotiable.

• Target/Expected Price: A reference for yourself and to gauge the market.

• MOQ and Estimated Annual Purchase Volume: This directly affects the supplier’s pricing sincerity.

• Request for Cost Breakdown: Material costs, processing fees, mold costs, packaging costs… The more detailed the breakdown, the easier it is to identify where to squeeze out inefficiencies. This is one of our most valuable contributions.

• Quote Deadline: No rules, no standards.

• Estimated Delivery Time: Tests the supplier’s production and planning capabilities.

Implementing a “Traditional Chinese Medicine Diagnosis”-Style Process
Once the process is standardized, efficiency and quality improve. Our general approach is:

• Documentation: As mentioned above, preparing the “exam paper.”

• Supplier Screening: This isn’t just a random search on Alibaba. We evaluate scale, years in business, location, and industry reputation—much like a TCM doctor diagnosing a patient, observing, listening, asking, and feeling the pulse. Sometimes, we even inquire about the boss’s character.

• Shortlisting Targets: Typically, we narrow it down to 5–10 potential suppliers—not too narrow, not too broad.

• Distribution and Communication: Sending it out isn’t the end. We follow up with calls or messages to confirm: “Mr. Wang, did you receive the file? Are the technical requirements clear? Is the mold cost included?” This step filters out half of those who didn’t read carefully.

• Review and Comparison: After the deadline, we collect the quotes and compare them item by item in a single spreadsheet. At this point, the detailed cost breakdown becomes invaluable.

• Negotiation and Final Selection: Negotiate with the top 2–3 candidates, leveraging competition among them to secure the best terms for you. Finally, sign the contract—everything settled in writing.

• Notify Unsuccessful Suppliers: Giving others closure also leaves the door open for future opportunities—the world is small, after all.

Managing a “Ideal vs. Reality” Timeline
In theory, a rigorous RFQ process should take about a month. But anyone in procurement knows that plans often change. Delays in technical evaluations from suppliers or internal communication hiccups are common. So, if the process stretches to two or three months, don’t be too surprised.
A professional agent’s value lies in anticipating these delays and preparing contingency plans for you in advance, ensuring the RFQ phase doesn’t bottleneck your entire order.

In Summary

A well-structured and meticulously executed RFQ process is the cornerstone of your successful order. A trained, experienced procurement team is the key to ensuring this cornerstone remains solid. Finding the most qualified suppliers and obtaining the most competitive prices from them is the first and most critical step in optimizing your supply chain management in China.

There’s a lot to it, but it ultimately boils down to professionalism, attention to detail, and a touch of interpersonal savvy. I hope my experience here can be of help to everyone. Procurement is a deep field, but it’s also dynamic—full of lessons and乐趣 (fun).

Well, the tea is brewed. If any of you have interesting procurement experiences to share, feel free—I’m all ears.