A sourcing and components glossary for industrial buyers: forty-one terms met when buying from China and Asia, from allocation and AQL to type of source and unified social credit code, each defined in one or two sentences with a link to the page where Wizea applies it. Definitions are neutral; the links show the practice.
- Allocation
- Allocation is the state in which a manufacturer's demand exceeds its capacity and the authorised channel rations supply to customers with order history; parts on allocation reappear on the open market at a premium. Where it applies →
- AQL (acceptance quality limit)
- AQL is the worst tolerable quality level, in defects per hundred units, that a sampling plan (such as ISO 2859-1) treats as acceptable for a lot; the inspection plan states it together with sample size and defect classification. Where it applies →
- Authorised channel (franchised distributor)
- An authorised channel, also called a franchised distributor, is a distributor contracted by the manufacturer to sell its parts, with full traceability to the manufacturer; after the manufacturer itself, it is the source with the most direct traceability. Where it applies →
- Broker
- A broker is a seller of electronic components who matches buyer and seller on the open market; an independent distributor additionally operates its own documented quality system. Where it applies →
- Business licence
- A business licence is the document issued by China's market regulator that records a company's registered name, unified social credit code, legal representative, registered capital, address and business scope. Where it applies →
- Business scope
- Business scope is the list of activities a Chinese company is licensed to perform; production verbs indicate a manufacturer, sales-only verbs indicate a trading company. Where it applies →
- Certificate of conformance (CoC)
- A certificate of conformance is a document in which a supplier declares that the delivered goods meet the specification and identifies the lot; for branded components, the manufacturer's own CoC is the one that carries traceability. Where it applies →
- CNAS
- CNAS (China National Accreditation Service for Conformity Assessment) is the body that accredits certification bodies and laboratories in China; it is a signatory of the IAF multilateral recognition arrangement, so certificates issued under its accreditation are recognised internationally. Where it applies →
- Consolidation
- Consolidation is the combining of lots from several factories and sources into one export shipment, with one packing list; Wizea consolidates most shipments in Shenzhen after inspection. Where it applies →
- Commercial invoice
- A commercial invoice is the seller's document stating the goods, quantities, prices, Incoterm and parties to a shipment; customs authorities use it for valuation and the buyer uses it for payment. Where it applies →
- Country of origin
- Country of origin is the country where goods were manufactured or last substantially transformed; it drives import duty and trade-remedy exposure and is stated on each Wizea quotation line. Where it applies →
- Date code
- A date code is the manufacturer's marking of when a component lot was produced; consistency of date codes across a reel is one of the attributes checked at inspection. Where it applies →
- EOL (end of life)
- EOL is the manufacturer's announced discontinuation of a part, usually with a last-time-buy date, after which supply comes only from remaining channel stock and the open market. Where it applies →
- Export documents
- Export documents are the papers that accompany a shipment out of the exporting territory: at minimum the commercial invoice and packing list, plus the carrier's transport document and any origin or product-specific documents the destination requires. Where it applies →
- EXW (Ex Works)
- EXW is the Incoterm under which the seller makes goods available at its premises, not loaded, and the buyer bears loading, export clearance, transport, insurance and import; it is Wizea's standard Incoterm. Where it applies →
- FCA (Free Carrier)
- FCA is the Incoterm under which the seller delivers goods cleared for export to the carrier named by the buyer at a named place, risk passing on loading or handover; available from Wizea on request. Where it applies →
- First article (FAI)
- A first article is the first production piece or pieces from the line that will run the order, inspected in full against the drawing and documented in a first article inspection report before series production is released. Where it applies →
- Golden sample
- A golden sample is an approved reference piece, sealed and signed by buyer and supplier, against which production lots are inspected; one copy stays with the factory and one with the inspecting party. Where it applies →
- Handover point
- The handover point is the named place where goods pass from seller to the buyer's forwarder under EXW (Wizea's standard) or FCA (on request); Wizea's main handover point is Shenzhen, with Hong Kong also available and Europe in development. Where it applies →
- HKIAC
- HKIAC is the Hong Kong International Arbitration Centre, the arbitral institution named in Wizea's Terms of sale; its awards are enforceable in mainland China under a dedicated arrangement and in the states party to the New York Convention. Where it applies →
- IAF MLA
- The IAF MLA is the International Accreditation Forum's multilateral recognition arrangement, under which accreditation bodies such as CNAS recognise each other's accredited certificates. Where it applies →
- Independent distributor
- An independent distributor is a seller of electronic components outside the manufacturer's franchised channel that operates a documented quality system: incoming inspection, traceability and quarantine. Where it applies →
- ISO 9001
- ISO 9001 is the international standard for quality management systems; certification confirms that the processes are documented, followed and improved, not that any specific product test is performed. Where it applies →
- ISO 14001
- ISO 14001 is the international standard for environmental management systems; Wizea's certificate covers packaging, consolidation and supplier selection practices among others. Where it applies →
- Lead time
- Lead time is the period from order confirmation (and payment, where a deposit applies) to availability of the goods at the handover point; it is stated on each quotation line. Where it applies →
- Lot code
- A lot code is the manufacturer's identifier for a production batch; together with the date code it gives the traceability needed for claims and recalls. Where it applies →
- LTB (last-time-buy)
- A last-time-buy is the final order window a manufacturer opens before discontinuing a part; buyers size it from remaining production life, annual usage and service allowance. Where it applies →
- MOQ (minimum order quantity)
- MOQ is the smallest quantity a source will sell or run for a given line; it is stated on each quotation line because it depends on the source, not on the intermediary. Where it applies →
- NDA
- An NDA (non-disclosure agreement) is a contract restricting disclosure of confidential information; in China sourcing it is usually complemented by an NNN agreement, which also covers non-use and non-circumvention. Where it applies →
- NNN agreement
- An NNN agreement is a non-use, non-disclosure and non-circumvention contract written in Chinese under Chinese law, signed in the factory's registered Chinese name, with liquidated damages a Chinese court can apply; the standard confidentiality instrument with mainland suppliers. Where it applies →
- Packing list
- A packing list is the document that itemises the contents, quantities, weights and markings of each carton in a shipment; it is checked carton by carton before handover. Where it applies →
- PCN (product change notification)
- A PCN is a manufacturer's notice of a change to a part (process, material, site, discontinuation); tracking PCNs for a BOM is the first step of obsolescence management. Where it applies →
- Quarantine
- Quarantine is the segregation of parts under review so they stay out of shipments; at Wizea, parts that do not pass inspection are quarantined and kept out of shipments. Where it applies →
- SAE AS6081
- SAE AS6081 is the counterfeit-avoidance standard for independent distributors of electronic parts: source selection, risk-based inspection, quarantine and reporting; Wizea's controls are aligned with AS6081A, not certified to it. Where it applies →
- SAE AS6171
- SAE AS6171 is a family of laboratory test methods (visual, X-ray, XRF, decapsulation, electrical and others) for confirming the authenticity of electronic parts, designed so results are comparable between laboratories; it certifies methods, not companies. Where it applies →
- Sourcing agent
- A sourcing agent is a service provider that finds suppliers and manages orders on the buyer's behalf for a commission, without taking title to the goods. Where it applies →
- Traceability
- Traceability is the ability to follow a part back to its manufacturer and production lot through documents and markings; it is full through the manufacturer and authorised channel, and lot-dependent through independent sources. Where it applies →
- Trading company
- A trading company is a business that buys from factories and resells under its own name with a margin; its business scope lists sales and import/export activities. Where it applies →
- Type of source
- Kind of source is the classification of where a quoted line comes from: manufacturer, authorised channel or independent; Wizea states it on each quotation line so the buyer can choose the channel that fits the programme. Where it applies →
- Unified social credit code
- The unified social credit code is the 18-character identifier of a Chinese company, printed on its business licence and used to look the company up in the national enterprise credit information system. Where it applies →
- Validity
- Validity is the date until which a quotation line can be accepted at the stated price and lead time; open-market lines carry short validity because the stock moves daily. Where it applies →
Tell us what you buy, and how often
A drawing, a BOM or one hard-to-find line, in any format. Add annual quantity and delivery rhythm, and we propose the programme.