Good Relationships

When importers decide to source from China, they must invest in developing good relationships with potential and existing Chinese suppliers. Three aspects are essential to implement a good supplier management strategy in China: (1) Know your suppliers inside out.  Identifying and knowing your suppliers is important for building an enduring relationship. There are no shortcuts in this kind of relationship building. Visit suppliers and see their technical capabilities and capacity with your own eyes. This includes their machinery and equipment, their process technologies, the number and qualifications of their employees, and the like. A bid is no guarantee of a supplier’s willingness and ability to meet your volume and quality requirements or future competitiveness. (2) Develop strong relationships with fewer suppliers. Identify a few suppliers that are willing to commit to a long-term relationship and to jointly creating a competitive advantage. To avoid fragmentation of the supply base, stop bidding out each…