The article points out that procurement in China is not an easy undertaking. There are many uncontrollable risks(Procurement Risk / Sourcing Risk), such as the economic situation of the world, policy deficiencies, missed opportunities, and a diplomatic stance on international trade. However, if you choose to use our company to procure in China, most of your risk can be eliminated. We have more than 4 years of experience in the industry and have successfully served dozens of successful Chinese projects for Europe or USA-based enterprises. What Can We Do for You? As an experienced procurement partner in China with deep connections domestically, we can help you find suppliers who will be willing to produce the items you need. And because our services are free of charge, you’ll save time upfront by not having to sort through potential suppliers on your own.
Different Procurement Risk in china than in America
To understand the different procurement risk factors and opportunities in China is key to making successful decisions on this topic.
1. In America we always have the luxury of being able to choose between safe countries for our projects. But in China, with such a young market who is also rapidly growing, it’s important to understand the many risks of our market.
2. “How can I protect my company’s products from counterfeiters?
First, ensure you have authentic, high-quality products.
Second, avoid direct and online procurement and only use authorized distribution channels.
3. “Is it possible to export fake products such as fake shoes and fake car parts?
If the product you are interested in isn’t easily identifiable and is widely distributed on the internet, then your chances of a counterfeit are high.” The article gives an example of one of the difficulties to identify fakes online.
Why china matters the most
The article points out that China is an essential base for global trade. In 2015, Chinese goods imported or exported totaled a staggering $16 trillion.
Since China is the world’s largest factory for consumer-facing goods and the world’s second-largest manufacturer overall, it is easy not to understand that China has a major influence in the global industry.
However, if you want to be successful in this industry, we highly suggest doing business with Chinese suppliers. The government is actively encouraging foreign investment to make the country more competitive and to keep consumer demands at a high level.
It’s critical that you understand the differences in how businesses are managed in China and in the West. So, it’s more important than ever to be educated in a global marketplace, and know that the future lies not in China alone.
Avoiding the pitfalls of procurement in china
In order to establish a business in China, it is important to be aware of the procurement process and pitfalls to avoid. So you need your procurement risk management. The procurement process in China can be complex and time-consuming, so it is important to be prepared for potential delays. There are also several pitfalls to avoid when doing business in China, including compliance risks, cultural misunderstandings, and corruption. By understanding the procurement process and avoiding these pitfalls, businesses can minimize the risk of doing business in China.
There are the top two pitfalls in China procurement:
1. Economic condition: The Chinese macroeconomic situation has been fluctuating since 2009. There are always good and bad years.
It is hard to know if we are in a good or a bad year. The economic situation can influence the number and quality of our suppliers and the price of the goods. And sometimes, a poor year affects even the best customers’ business, which can make them change their projects to more feasible locations. If you buy from suppliers to ensure that you will reach your delivery date, it is often better to make purchases in a good than a bad year so that you will be protected if the economic downturn brings more delays.
2. Supplier’s Quality: Suppliers can change the quality of their goods over time. Suppliers are prone to changes in terms, quality, capacity, price and delivery if they do not keep up with the market.
The most common problems
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1. Slow response
2. Lack of communication
3. High overheads
4. High delivery time
