GlobalAutoTV
Click to watch Graeme Maxton -
Click to watch Graeme Maxton -
china resources


Need an office in China? Office suites, meeting rooms, virtual offices, network access



free downloads
CHINA: "Chinese Car-Sharing is Blossoming" 2017 report

CHINA: "Chinese Car-Sharing is Blossoming" 2017 report. 16-page report by Roland Berger.

proceed to download
eJournals






back to index backCHINAtalk May,  2016


Three Ways to Ensure Your Chinese Supplier is the Best Fit for You

While many manufacturers are understandably hesitant to increase their level of sourcing activity within China given its current economic environment, many forward-thinking companies aren’t second-guessing the decision. Instead they realize that now is the time to re-focus one’s sourcing efforts from China for reasons that range from a depreciated Chinese currency to the growing desire on the part of progressive suppliers to further boost the value they offer.

The key is to carefully vet suppliers to mitigate the risk involved – especially since sourcing from Chinese companies is different than sourcing from domestic suppliers. Here are three ways to ensure a Chinese company is the right match, whether the goal is to begin sourcing from China, or increase the volume of materials and products already sourced from the world’s second largest economic powerhouse.

Meet Face to Face

Too many manufacturers will simply conduct online searches and/or hold videoconferences when vetting potential suppliers in China. The upside to the approach is time and money saved up front. The downside is the potential for costly problems on the back end, whether it’s low quality components, supply chain disruptions – or something more severe in the form of legal problems, such as a consumer recall.

A better practice is to meet in person with potential suppliers on a short list of candidates that have been thoroughly vetted. Face-to-face meetings in China often prove to be invaluable since they provide insights that cannot be gained otherwise. Among other things, this includes knowing who actually owns the company involved and the full capabilities of the operation. Another best practice is to ensure the person assigned to visit China and select the best supplier is qualified to do it.

A company located in the Midwest that we recently helped serves as an example of what can happen by not following a rigorous process. The company is a tier-1 supplier that sources home heating and cooling products from China and sells them through big box stores in the United States. The arrangement worked well until an important safety mechanism on one of the products failed, creating the potential for a consumer recall or injured user. In addition, delivery dates began to slip.

Source: IndustryWeek - GAI






previous page

go top
search our site


Loading

CHINAtalk

Other articles from the same issue (May,  2016).

The Transformative Impact of Industry 4.0 on China’s Automotive Industry
play read on

As Analysts Predict Slowdown In Sales Growth, Auto China 2016 Showcases Rise of SUVs in China
play read on

China Vehicle Demand Finishes Q1 on a Strong Pace
play read on

China chases early lead in world’s next industrial age with smart manufacturing
play read on

What You Need to Know About Manufacturing in China Today
play read on

China’s economy in doldrums: 8 factors driving the turmoil
play read on

China signs pact to enhance worldwide taxation cooperation
play read on

China, WIPO ink new agreement to enhance global IP cooperation
play read on

Doing Business in China: Don’t Bribe Anyone, Even Indirectly
play read on

China Tax Weekly Update - Issue 16
play read on

China’s manufacturing ability 4th worldwide: Report
play read on

Three Ways to Ensure Your Chinese Supplier is the Best Fit for You
play read on

EU denies China ‘market economy’ status
play read on

On IP Protection, USTR Finds Fault With China, India … And Switzerland?
play read on

Doing a Deal in China? Get a Company Search Report First
play read on

Handling Mass Layoffs in China’s Manufacturing Sector
play read on

Talent in China: Find it, grow it, keep it
play read on

Customs Policy Update - for the Period of April 2016
play read on

Manufacturing overcapacity in China drags robot market
play read on

China Factory Stabilization Shows Little Need for Added Stimulus
play read on

Opinion: China’s grand strategy: Use the world as one large supply chain
play read on

Foreign Firms Need New Strategies For China's 'New Normal'
play read on

China: Risk Bites (PwC China monthly newsletter)
play read on

Top Chinese scientists earning big bucks
play read on

Chinese companies widen search for foreign talent
play read on

China Based Foreign Manufacturers – Finding “Beyond China” Investment Intelligence
play read on

Chinese Cities of Opportunity 2016 study report
play read on

Cyber-attacks a standard part of doing business with China, security experts say
play read on

What China’s Foreign NGO Restrictions Mean for U.S. Businesses
play read on

Chinese investment in Australia growing and diversifying, finds latest Demystifying Chinese Investment in Australia report
play read on

China continues to add to global glut in manufacturing
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120