How To Build A Procurement Process With Chinese Manufacturers and Suppliers?

By: James Clayton
Submitted: 2008-03-07 16:13:19
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Does this sound like your Chinese procurement process?

Step 1: You spend hours and hours on the phone and writing emails to locate Chinese manufacturers. (3-4 weeks)

Step 2: You send an email with prints attached inviting manufacturers to bid on a part or service. (1 week)

Step 3: The emails come back with the expected questions regarding engineering, payment, and delivery issues. (3 -4 weeks, if not longer)

Step 4: You narrow the field of bidders - usually by price. (1 week)

Step 5: You request samples. (1 - 2 weeks)

Step 6: You receive the samples in the usual yellow cardboard box secured with excessive tape. After battling your way through the adhesive barrier, you finally get a look at your supplier's samples. On first inspection the parts look like the blueprint.

Step 7: You know that you have to deliver the samples to the dreaded QC department where the grim reaper (inspector) will give the detailed analysis. (1 week - they have their priorities)

Step 8: You receive a bleeding inspection report that reveals another supplier sending you junk parts.

Step 9: Repeat steps 1 - 8!

This process takes up to 10 - 13 weeks before you can determine the supplier's quality and efficiency. What if you could escape this cycle of rejection and develop a robust procurement process for Chinese manufacturers that will let you know within 2 to 3 weeks if you have a reliable manufacturer of your product?

Processes are nothing more than qualifying a combination of inputs and expecting an output. Step 1 in any process is the most critical. Looking at step 1 in our example reveals a critical missing element - Guanxi.

A successful procurement process from China begins with learning the value of relationships. Just imagine that you could afford to visit and audit every supplier in China before you ever released the first quote. As significant as this seems, it is still not as powerful as Guanxi. A well- established social network in China is the first and foremost step in a robust procurement process in China. To learn more about building Guanxi go to www.chinabizsuccess.com.

Learn more on how to develop Guanxi 7,000 miles away by going to www.chinabizsuccess.com

Article source: Expert Articles

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