THE BUSINESS REVIEW FOR PROCUREMENT LEADERS
Through 20 years of doing business in China, the authors – consultants based in London, São Paulo and Shanghai – have watched plenty of sourcing managers lose their shirts when trying to deal with Chinese suppliers. They believe that many today are guilty of taking a short-term, narrowly cost-focused approach and are neglecting to invest the time needed to build longer-term partnerships.
Faced with difficult challenges, some purchasers take the “easy option” of choosing those suppliers that speak the best English, even though they may not be sufficiently hungry for the business; while others seek to outsource the problem. Neither is likely to produce the optimal economic outcome. Instead, you need to understand clearly the Chinese environment and adopt the same rigorous, structured process to sourcing that you would elsewhere.
The authors’ advice includes thinking carefully about how your requirements
may change over time; playing the game when it comes to developing social relationships
and respecting Chinese attitudes to “face” and hierarchy; ensuring
that you fully understand the strategy, economic drivers and ownership structure
of any potential partner; and sticking to business fundamentals.
