ISM 2009: Discover Global offers tips for sourcing in China
When doing business in China, yes doesn't always mean yes
By Paul Teague -- Purchasing, 5/5/2009 3:26:00 PM
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When sourcing in China, purchasing has to be mindful of the importance to their Chinese counterparts of saving face, says Greg Toporcer, president of Discover Global, an Austintown, Ohio-based firm that helps companies source in China, Taiwan and Vietnam.
That concern for face can result in suppliers saying they understand a buyer’s requirements when they really don’t. The Chinese suppliers then proceed to try to figure out the requirements on their own, sometimes to disastrous results.
Among those results is that it can cost companies a great deal of money to repair problems that never should have occurred in the first place.
“There can be difficulties in translating specs,” he says. “Additionally, Chinese standards may differ from American standards for the same material.” A case in point, he says, could be stainless steel. The nickel content in Type 201 stainless in the U.S. could be different than the nickel content in Type 201 Chinese stainless steel.
The best way to solve communications and standards problems is to have feet on the ground constantly monitoring suppliers, he says.
For more tips on doing business in China, see: DOs and DON'Ts of doing business in China and 10 tips to better China sourcing
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