How To Be A Reliable Chemical Supplier in China That Your Customers Can Count On?

In 2024, China is already a global leader in chemical manufacturing and supply.

With its strong industrial infrastructures and complete supply chains, competitive pricing is only a natural result.

There are over 1 million chemical importers and exporters in China and the figure is still counting.

However, to succeed in this highly competitive market and become a reliable chemical supplier in China for your foreign customers is not easy.

The key lies in maintaining your reliability, quality stability, and safety. Let’s explore the key steps to becoming a reliable chemical supplier in China in our experiences of exporting chemicals over a decade.

1. Stictly operating according to the laws as a chemical manufacturer and supplier:

There are strict regulations for chemicals, production, distribution, storage, shipments, etc.

Some chemicals are strictly regulated and forbidden for sale without related permits issued by authorities.

In serious situations, someone has to go to jail and the company will be shut down.  You don’t want any of your customers unable to find you when they need you, right?

Ensure compliance with environmental protection laws, safety standards, or inspections from related authorities will become more and more frequent, even shutting down your facilities until totally corrected.

Any of the legal accusations from the government or other entities will be recorded in your credit history, your suppliers will have doubts when dealing with you, and they won’t give you credit terms as good as before.

When your customers hear that you are stuck deep in legal issues, they will think twice before placing orders.

Any of the chemical suppliers should do training on the new regulatory changes regularly to avoid breaking any laws.

be a law-abiding chemical supplier in China
strict quality control for chemicals

2. Strict Quality Assurance:

Steady product quality and consistency are the keys to building trust with all chemical importers.

Everybody knows that quality is super important and the hard part is how. Below are the measures in detail:

2.1 You should implement quality control measures at every step during production, from the approval of incoming raw materials to the final packaging and labeling.

Try to set up KPIs for each production stage and keep good records of them. It will not only maintain a high-standard quality control but also a good job for accountabilities when problems occur.

2.2 Invest more in modern testing devices and hire experienced technicians to conduct quality checks.

High quality is made sure by high-tech testing devices and skilled operators, both of which will cost more money.

If you are unwilling to spend on them, think about how much it will cost you for possible quality disputes.

3. Good Communication:

You have to understand the importance of good communication with all the working partners: your clients, suppliers, and regulatory authorities.

1. Respond ASAP to your customer inquiries and address any concerns or complaints they may have.

Then do your best to provide your customers with accurate prices for APIs provided, along with CoAs of CP/USP/EP/IP/BP, sterile or not, injection grade or topical grade, if your quotations include documents support such as GMP/CoPP/WC/CEP/TGA, DMF, stability data sheets and safety data sheets.

2. For any quality complaints, try to settle them professionally, either replace the goods for free and cover both the importing fees/duties borne by importers, refund them in full, or give them a satisfactory discount if they can purify the chemicals themselves.

3. Keep your clients posted on any stock availabilities,  possible price fluctuations, or import and export regulations that may affect their business, all in all, make yourself valuable to your customers.

good communication with your customers
supply chain management for chemicals

4. Steady Supply Capacity

There are always hot-selling chemicals and slow-moving chemicals, and how we allocate our production capacities for each product for your customers is essential.

The key lies in your production schedules according to the order quantities from each customer.

You have to make sure that you can supply it before your customers need it, and this is where good communications stand out, you have to keep a weekly or monthly routine to check up on your customers’ purchase plan so you can get the raw materials in advance.

But what if there is a supply crisis for your intermediate supply? It is time you do something about your raw material supply management. Below is how:

4.1 Build strategic relationships with your regular suppliers of intermediates, and sign quarterly or yearly contracts with them for a stable supply, even more, try to have credit terms so you have more cards to play when there are any quality issues.
4.2 Make sure you have 2~3 suppliers for each raw material so you can lower the risks of supply chain disruptions from your regular supplier.
4.3 Do more research on market trends and forecast demand besides the feedback from your current customers so you can further optimize your production schedules and resource allocations.

5. Safe Production

To achieve a steady supply for your customers, you will need smooth and safe production. Can you imagine the consequences of an accident in a chemical factory beyond control? The entire industrial park could be shut down by the government for serious incidents and explosions.

How do you manage safe productions? Below is how:

5.1: Make SOP (standard operating procedure) for each production, what to do and what not, and this will require training on workplace safety and operation skills for all onsite employees.
5.2 Implement strict safety protocols and invest in safety equipment to prevent hazard accidents and minimize occupational hazards.
5.3 Comply with environmental regulations and adopt optimal reaction processes to minimize waste generation and pollution through relentless technique innovations.

How To Be A Reliable Chemical Supplier In China?
How To Be A Reliable Chemical Supplier In China?

6. Keep bringing value to customers and employees:

Regularly evaluate your performance and seek feedback from customers and employees.

6.1 Find places to improve and take actions to enhance efficiency, quality, and customer satisfaction. 

Always remember who your customers are, what your real asset is, and how can you keep bringing value to them.

For your customers, they need lower prices than current market prices so they can sell easily, a better price is always attractive.

Good prices are not enough, your customers need to be worry-free about quality issues, and your poor quality will push all your customers to your competitors.

As for your employees, you need to respect them, giving them a decent salary is one important way to show respect. 

What’s more, try to ask for advice from your employees on a monthly or quarterly schedule, and listen to them carefully for ideas to improve.

6.2 Never settle for your current techniques, constantly seek innovation to further improve the yield to lower your cost.

Once you have lower costs, you can further improve your product competitiveness and customers’ margins.

Try to explore technologies that can streamline operations, and improve production efficiencies.

6.3 Try your best to enlarge your customer base to generate more sales.

Develop new customers while securing orders from regular customers, when you have more and more customers to your name, no seasons will be slack, and your number of sales will keep breaking records.

Once your sales are higher, you raise salaries for your employees and they tend to work harder and cherish their opportunity to work in your company to be a valuable company asset.

All in all, to be a reliable chemical supplier in China requires a lot of offers.

Always put the needs of your customers in priority, take care of those matters that they are concerned about, and send them detailed reports of the measures you have taken to assure them of the results needed.

Your ultimate goal will be making your brand stand out with good reputations so when your brand is mentioned, it means high quality and reliability to your customers so they will choose you in a blink among all the potential exporters.

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