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We created this page to help you better understand the sourcing, production, and fulfillment process—especially if you’re new to working with suppliers in Asia. From industry vocabulary and checklists to common mistakes and compliance essentials, you’ll find clear, practical guidance to help you make better decisions. Ready to go deeper?
Industry Vocabulary (Glossary)
Understanding industry terminology helps you communicate clearly with factories, freight partners, and QC teams. This glossary simplifies complex jargon so you’re always in control, no matter where your product is in the supply chain.
OEM (Original Equipment Manufacturer)
A company that produces parts or products that are marketed by another company under its own brand.
ODM (Original Design Manufacturer)
A manufacturer that designs and produces a product based on their own concept, which is then rebranded by another company.
Prototyping
The early sample or model of a product built to test a concept or process.
Tooling
The process of creating molds or equipment needed for mass production.
Sampling
Producing a small batch or unit for testing and evaluation before full production begins.
MOQ (Minimum Order Quantity)
The smallest number of units a supplier is willing to produce or sell.
FOB (Free on Board)
An Incoterm where the supplier covers the cost until the goods are loaded on a ship; the buyer assumes all responsibility after that.
Factory Audit
A formal assessment of a factory’s capabilities, capacity, and compliance before placing an order.
Supplier Verification
The process of checking whether a supplier is legitimate and suitable to work with.
RFQ (Request for Quotation)
A document that asks suppliers for pricing and terms on specific products.
AQL (Acceptable Quality Limit)
The maximum number of defective items considered acceptable in a random sample.
Pre-Production Inspection (PPI)
A QC check that occurs before production starts, usually to verify raw materials and production setup.
During Production Inspection (DUPRO)
A QC process done while production is ongoing to ensure standards are met mid-way.
Pre-Shipment Inspection (PSI)
An inspection conducted before shipment to verify product quality and order fulfillment.
Lab Testing
Scientific testing of a product to confirm compliance with safety, durability, or legal standards.
Incoterms
International rules that define the responsibilities of sellers and buyers for delivery of goods (e.g., FOB, CIF, EXW).
HS Code (Harmonized System Code)
A global customs code used to classify goods and determine import duties.
Bill of Lading (B/L)
A legal shipping document issued by the carrier to acknowledge receipt of cargo.
Air Freight
Shipping goods by air, typically used for urgent or lightweight shipments.
Ocean Freight
Shipping goods by sea; often the most cost-effective method for large, heavy shipments.
Rail Transport
Shipping goods by train, useful for landlocked countries and larger regional logistics.
Express Shipping
A fast and often premium shipping option using services like DHL, FedEx, or UPS.
3PL (Third-Party Logistics)
Outsourcing logistics and supply chain tasks like warehousing, packaging, and shipping to a third-party provider.
Pick and Pack
A fulfillment service where individual items are picked from inventory and packed for shipment.
SKU (Stock Keeping Unit)
A unique identifier for each product and variant used for tracking inventory.
Lead Time
The total time between placing an order and receiving it.
Order Fulfillment
The complete process from receiving an order to delivering the product to the customer.
Common Mistakes to Avoid
Small oversights in sourcing, production, or shipping can lead to big delays or unexpected costs. Learn from the most common mistakes we’ve seen over the years, so you can avoid them from day one.
Relying on a single quote: Always compare multiple suppliers to ensure competitive pricing and terms.
No factory audit: Skipping factory checks can lead to poor working conditions or fake suppliers.
Ignoring MOQs: Not understanding Minimum Order Quantities may affect price negotiations or lead times.
No market validation: Skipping early testing can lead to investing in a product no one wants.
Incomplete product specifications: Leads to misunderstandings with manufacturers.
Changing designs mid-production: Causes delays and added costs.
Poor packaging: Increases risk of damaged goods and returns.
No inventory tracking system: Leads to overselling or stockouts.
Unclear return policies: Confuses customers and increases support tickets.
Not accounting for customs duties: Surprise costs can harm margins or delay delivery.
Wrong shipping method for product type: Fragile items via ocean freight? Risky.
No tracking system: Customers expect real-time visibility.
Skipping inspections: Increases the risk of defective products reaching the market.
Not using certified labs for testing: Especially important for food, toys, or electronics.
Assuming “big factories” = good quality: Not always true without checks.
Checklists
Success is in the details. Use our step-by-step checklists to make sure nothing falls through the cracks—whether you’re developing a product, booking a shipment, or inspecting a factory.
Define product specifications (materials, dimensions, compliance needs)
Set target price and acceptable MOQ
Identify must-have certifications (e.g., CE, ISO, FDA)
Decide on payment terms (deposit %, balance timing)
Audit shortlisted factories
Request 2–3 quotes before final selection
Sign NDA before sharing designs or IP
Conduct market research and competitor analysis
Create a detailed product brief or sketch
Choose materials and technical components
Build initial prototype
Run small user tests
Finalize design, packaging, and instructions
File for IP/trademark protection if applicable
Schedule factory audit
Review Acceptable Quality Limit (AQL) standard
Define critical, major, and minor defect criteria
Decide on inspection types (pre-production, DUPRO, pre-shipment)
Ensure product sample is approved
Share full checklist with inspection team (labeling, specs, packaging)
Verify third-party lab test requirements (if any)
Choose appropriate shipping method (air, ocean, train, express, postal)
Ensure export documents are prepared (invoice, packing list, COO)
Clarify Incoterms (EXW, FOB, CIF, DDP)
Arrange insurance if needed
Book shipping in advance to avoid delays
Prepare customs clearance paperwork
Track shipment and confirm delivery
Define fulfillment location (Asia-based or final market)
Register SKU and barcode for each product
Set up inventory tracking system
Prepare packaging guidelines
Define return and refund policies
Choose delivery partners (DHL, FedEx, postal, local couriers)
Test sample orders to check process flow
Basic Compliance & Sustainability Standards
Staying compliant isn’t just about following rules—it’s about protecting your business, your customers, and your reputation. These standards help ensure everything you do is ethical, legal, and built to last.
All products should meet the safety and regulatory requirements of the destination market. This includes:
CE marking (EU) or FCC certification (USA) for electronics
REACH compliance for materials and chemicals
FDA approval for food-contact or health-related products
EN71 or ASTM for toys
Clear and accurate labeling, including country of origin and warnings
Ethical production is non-negotiable. Expect your suppliers to provide:
BSCI (Business Social Compliance Initiative) audit
Sedex or SA8000 certifications
No child labor or forced labor
Safe working conditions, fair wages, and reasonable working hours
A documented Code of Conduct signed by the supplier
Reducing your supply chain’s footprint matters — to you and your customers. Look for:
Factories with ISO 14001 Environmental Management certification
Use of recyclable or biodegradable materials
Water- and energy-efficient production practices
Low-emission shipping options (like rail or consolidated sea freight)
Eco-friendly packaging solutions with minimal plastic
We hold both suppliers and clients to high standards. We:
Prefer to work with partners who follow ESG (Environmental, Social, Governance) guidelines
Expect product owners to consider sustainable design and materials
Encourage low-emission logistics and responsible sourcing choices
Help clients verify certifications and factory claims before production
Acceptable Quality Limit (AQL) standards are internationally recognized sampling systems that help define how many defective items are acceptable in a batch.