10 issues to look for when you start dealing with China suppliers

1.- Transportation routes. If your parts are going to cross multiple provinces there can be extra costs involved.
2.- Localization of components. Cost, quality, reliability and delivery are the first concerns. But localization tends to take a long time -sometimes as long as six months- so count on extended times to get this completed.
3.- Turnover. Your middle management and up tends to have a “normal” turnover rate, but hourly employees can have significant turnover at Chinese suppliers.
4.- Key people. If turnover is a big concern, have the company put employment contracts into place so you can retain key folks.
5.- Local holidays. When the Chinese take holiday everyone scatters so if you need your parts during those times, plan ahead. Know the holidays and know where your supply will come from then.
6.- Quality. Make sure you are very specific in you needs, if you are general they will miss the mark.
7.- Communication delays. If I send an email today, I will see a response tomorrow and they will see a response they day after. Counting that is three days for one email exchange, so schedule calls often to help with it.
8.- Language barriers. Obviously, this can be a big issue if not managed properly, especially if you use acronyms too often. Be specific and confirm understanding often with questions and follow ups.
9.- Systems. Most Chinese companies have home grown ERP systems that may not do what you want or need. Check first to see what level of IT your supplier has.
10.- Never assume anything. Spell out every detail and you should be fine, but if you don’t you may run into issues.

These are based on my own experiences. If you have other tips or comments, feel free to post them below. And good luck!

By Michael Higgs in Purchasing.com