Nanjing / Jiangsu, China
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Price benchmarking

Comparing China sourcing offers: unit price is not total cost

For a dependable price comparison, specification, quality level, Incoterm, volume and scope must match. You must account for differences transparently and on a stated basis.

Procurement analyst compares total cost, transport, inspection and quality risks

A lower quotation may become more expensive after packaging, inspection, transport, duties and quality risk. Offers become comparable only under consistent assumptions.

1. Establish one comparison basis

Agree material, tolerances, packaging, certificates, annual volume and delivery terms before comparing prices. Otherwise, you compare prices for different scopes.

  • Identical specification
  • Same volume tier
  • Consistent Incoterm
  • Defined payment terms

2. Costs beyond unit price

Include every expense until you receive usable goods at the destination. Individual items may be small, depending on the product. Together, they can change the supplier ranking.

  • Tooling and samples
  • Packaging and labelling
  • Inspection and testing
  • Domestic transport and export
  • Freight, insurance and duties
  • Anti-dumping and countervailing duties where set for the tariff code
  • Carbon border adjustment (CBAM) for iron, steel and aluminium goods
  • Financing and inventory carrying cost
Example of a structured total-cost comparison
Cost blockTypical basisComparison point
ProductUnit price and order quantityAlign specification and volume tier
QualityInspection, scrap and reworkInclude known defect rate and inspection effort
LogisticsDomestic transport, freight and insuranceUse the same Incoterm and destination
DutiesTariff, anti-dumping or countervailing duty, CBAMCheck tariff code and origin in advance
CapitalPayment terms and inventory durationExpose financing and inventory impact

3. Risk as a cost factor

Rework, scrap, late delivery and emergency air freight incur real costs. Include known defect rates and the cost of a deviation in your comparison.

  • Quality and complaint cost
  • Delay and safety stock
  • Switching and ramp-up cost

4. The result

A complete comparison shows prices, assumptions, cost drivers and risks. You can then judge whether renegotiation, specification changes or a supplier change makes sense.

IMPROVE – work on concrete problems

IMPROVE – work on concrete problems
ServicePriceScope and result
Single-Issue Resolution€390We handle one defined problem at one supplier remotely. The required communication runs for no more than five Chinese working days. We close with the solution or the verified position if the supplier does not cooperate or implementation is not possible. Otherwise, we record the position at the end of the agreed period. An on-site visit or another problem is not included.
Improvement Package (4 weeks)€990One supplier, one defined goal: baseline, action plan, two follow-ups with assessment of the implementation evidence.
Improvement Programme (8 weeks)from €2,490We work with up to three suppliers on one goal each over eight weeks and follow up actions as the case requires. You receive a written status every two weeks, or weekly for time-critical or high-risk cases. At the end, we record whether each goal is achieved, has open conditions or remains blocked by verified non-cooperation or inability to implement.

We address one defined problem per existing supplier. This may be a delivery delay, recurring quality deviation, incomplete corrective action, cost or process problem, or unclear responsibility. We agree on-site assignments separately where needed.

The accepted written proposal for the confirmed scope remains authoritative.

An assessment of your product group: Two working days to the result.

We assess your existing China procurement or a new China opportunity for up to three comparable items and recommend next steps.