China Sourcing: Culture, Knowledge and details

Why is it so important to have a great China sourcing team?   Because great sourcing is all about the details.  And details have a lot to do with culture and local knowledge.

Your China team can make a great difference in making sure everyone in your US office is on the same wavelength as your factories. This is especially important when negotiating contracts, pricing and ensuring your product specifications are understood. Clear communication is the cornerstone of a good China supply chain.   And the best communication is when your USA messages come out of the mouths of your China employees – in Chinese.

China’s culture and customs are different from that of the US.  Language can be both a barrier and a springboard.  For example, language is a barrier when the original message is misunderstood. Language is a springboard, on the other hand, when you outdo the Competition in making yourself clear to your suppliers.
These are other things your China sourcing team could help you navigate, such as:

- Punctuality is very important; they consider being late as rude.

- When exchanging business cards, use two hands and make sure the card is facing up.

These are small things but details, as you know, matter.

Then there are bigger issues.  How can you tell if agents might misrepresent themselves as being owners or managers of the actual factory, when they are in fact a middle man. It is very difficult to fool the locals. Your China sourcing team knowing your China supply chain’s objectives and concerns will help to avoid these pitfalls. Another challenge is translation: if the translator is from their side, the interpretation can be completely different than if the translator is from your side, much can be “lost in translation” and your interests will not be fully represented.  Your China team can fix that, or even better, prevent it.  And they can better negotiate pricing, benchmark competitive factories, ensure your supplier is not sub-contracting, and monitor the quality process.

Quality is always a big concern.  You must be vigilant. And the best way to do that is to be on site, boots on the ground, that way you can keep control of the quality before it becomes a problem. Your China team can constantly watch and monitor the quality during the entire production process and ensure nothing leaves the factory unless it has been inspected.

These are just some of the functions a great China supply chain management team can provide you.  Have you experienced any issues that might have been heightened by not having your own China supply chain management team?  I would like to hear some of your encounters with your sourcing in China, good or bad, in the comments below.