By Pritesh Samuel Many foreign investors diversifying their supply […]MORE
Going Beyond Price in China
You get what you pay for
One size definitely does not fit all, and more importers are likely to experience the negative consequences of selecting an improper supplier than all other risks associated with doing business in China. That’s why it’s imperative to incorporate a robust supplier selection process into any importing strategy. The ABC Group has developed a multi-tiered analysis and selection process that goes far beyond the lowest price when selecting the right supply partner in China.
A systematic vetting process
With easy access to numerous turnkey supplier solutions in China via the internet and multiple tradeshows, finding the best, long-term importing partner is a much more involved process than is often considered. By basing supplier search on more than just price, companies can achieve benefits such as:
- Stronger, more collaborative supplier/customer relationships
- Lower claim rates
- Enhanced troubleshooting and crisis management
Although a lower-priced option might seem like the more profitable strategy in the short term, the high costs associated with claims and quality issues may negate any profits over time. By taking a broader, more holistic approach toward selecting a supplier, companies can reduce these costs in the long run by choosing a quality partner.
The process for selecting the right overseas supplier partner could take months. It requires analysis of data points across the unique criteria that is most relevant to each specific business as well as external or market driven information. Once the search has been narrowed-down, it’s vital that companies meet face-to-face with potential suppliers and visit their facilities in person to confirm validity.
Even with existing suppliers, it’s important to audit them regularly for optimal value.
For more information on Going Beyond Price, download the PDF here.