How to make a good enquiry

By Diana in 'The China Sourcing Blog'

How to make a good enquiry

As a request for a quotation, an enquiry is an unavoidable stage in the sourcing work flow. A good enquiry should provide sufficient information for buyers to quote efficiently and accurately.

It can also build up initial understanding between buyers and sellers so as to give impetus to the succeeding procedures like quotations, further contact and transactions. What would then make a good enquiry? The following are some items of information I suggest buyers should include in their enquiries:

• Brief introduction of the buyer and background of the enquiry:

  A brief introduction of the buyer will give the seller an idea of who they will be quoting to. Chinese suppliers usually receive enquiries by fax or email with an individual's name and a company name, but no company information. Such enquiries can easily be ignored because the sellers are uncertain whether the enquiry is from a competitor or from a fake company. Providing more background information on the buyer and the enquiry will help the seller understand where the products in question will be used and judge if their products are suitable.

• Product names

  All buyers know that they must include product names in their enquiries, but sometimes they just put the abbreviation or just a 'byname', which are all difficult to understand for sellers who speak a different language. One should never underestimate the language barrier, and the most standard product names should always be used. Or, if unsure, all the possible names should be included.

• Quantity

  Sellers need quantity information of potential orders to know if their manufacturing capacity can meet the demand and to determine what price they will be able to offer. Quantity information should be combined with order frequency.

  Common questions can include the following:

  Is it a once-off or a long-term order?

  How many orders will the buyer place per year?

  How big will the average volume of each order be?

  Many buyers often enlarge the order quantity in their original enquiry in order to get better prices. I personally disagree with this practice because once the seller realizes that the order quantity is not as big as promised, the relationship will usually be damaged and the seller could try to reduce after service or increase prices by adding extra charges.

• Specifications Buyers should always provide detailed specifications, including drawings, chemical analysis, material grade and sometimes samples. Text descriptions should all accord with international standards, and if the drawings or documents are in a language other than English, a bilingual version should also be provided. This is not only for the sellers to save time with translation, but also for the buyers to reduce the risk of misunderstanding.

• Quality requirements

  There are many ways to describe requirements on quality. Usually the buyer will combine several ways, depending on the product:

  1. Brands.To use parts or raw materials with well-known brands is the easiest way to ensure that the parts or raw materials will be correct. For example, when we source gensets, if we request Cummins engines and Stamford generators, we can basically be assured we are getting the right genset. Sellers and buyers can also save time on looking for suppliers and on inspecting some parts of the products. However, for most products, to use parts or raw materials with brands will cost more.

  2. Equal/Similar products.If buyers allow the seller to recommend other parts or raw materials with equal or similar functions and specifications, this should be noted clearly in the enquiry.

  3. Standards The buyer usually requires the product to adhere to certain standards. My clients in South Africa, Australia and Russia usually request the products to meet SABS, AS and GOST specifications. Chinese suppliers, however, are commonly familiar with the Chinese standard GB, Japanese standard JIS, and some US and European standards. It is sometimes not even helpful to include standard requirements in the enquiry, because some sellers will refuse to quote because they are unwilling to study other countries' standards.

  4. Samples. This is the most obvious way, but it will take some time for samples to arrive and to be analyzed.

• Quotations

  Quotations should always include the trade terms, currency, price number and unit. Both sellers and buyers should understand the trade terminology very well, especially those terms which are commonly used, such as FOB, CIF, C&F, etc. The choice of currency has become extremely important since exchange rates between RMB and other currencies are frequently fluctuating. So it is essential for the buyers to be familiar with the RMB's exchange rate with their local currency and to be prepared for the potential risk caused by the RMB's fluctuation. For some special products, the buyer should clarify what unit the quotation should be based on. For example, with casting products, buyers should make it clear whether the price should be per piece or per kg.

• Payment Terms

  Buyers usually consider the enquiry stage to be too early to discuss payment. This is indeed true most of the time, but buyers operating within financial systems with specific requirements should be given favorable terms. For example, some countries have strict foreign currency systems that require buyers to transfer a certain minimum amount before the goods can be shipped, and sometimes buyers are subject to a long process of applying for bank clearance or approval from a currency management bureau. Under such circumstances, the buyer may prefer lower prepayment or other payment terms which require no T/T before shipment, which creates extra banking costs for both sellers and buyers. Those working in procurement should be aware of these limitations and if necessary, let the potential suppliers know.

• Delivery Time

  When enquiring about delivery time, the buyer should pay attention to the following:

  1. If a sample is required, how long will it take for the sample to be ready?

  2. How long will it take to manufacture different quantities of products?

  3. When will delivery time commence, the contract signing date or the prepayment arrival date?

  4. Will delivery time include the shipment booking time? (After they are ready, goods can sometimes only be shipped several weeks later due to difficulties in booking the shipment, especially bulk shipments, or shipments to certain countries).

• Packaging

  Packaging can sometimes be very important in the composition of the price. The buyer should be aware of the following issues and raise requirements on packaging where necessary:

  1. Characteristics of the goods

  2. Shipping methods (by sea or air, by bulk or by container)

  3. Shipping period

  4. Policy in force at the destination, such as regulations on imported wood

  5. Storage needs

• After Sales and Warranty

  For some goods it is necessary to know what type of after sales service the seller can provide, especially when the sellers do not have a presence in the buyer's home country. The quality of after sales is also a key consideration when choosing the best supplier. If a buyer has a specific requirement on the warranty, the seller should be notified so they can take account of this when calculating prices.

• Quotation Deadlines and Validity Period

  An enquiry should include a reasonable deadline for the sellers to quote by, and should also remind them to include valid by information in their quotations. Usually, a quotation's validity period could range from three working days to three months depending on the goods. If the buyer requires a longer period to do more filtering work, they should state this requirement clearly in the enquiry.

• Non-disclosure Agreement (NDA)

  When buyers send enquiries that contain sensitive information, such as designs with IP or new product information, they should prepare an NDA and ask the potential seller to sign it before they transmit confidential information.

• Contact Details

  As the last part of an enquiry, the buyer's contact details should be clearly provided with the contact person's full name, title, department, telephone and fax numbers, and email address.

  In this series we have talked about a lot of elements which together make a good enquiry. These elements can reduce risk, increase sellers' and therefore buyers' efficiency, and of course help in getting the quotation you want.

  We welcome any feedback should there be further questions or suggestions.

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