Open Source America
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China manufactures account for world’s 75% of toy production despite the cry that lead contamination of high proportions still persists in toys. However, this need not be seen as a detriment to China sourcing. China manufactures consumer durables in bulk which are designed in Europe proves that China sourcing is safe. The advantage China manufacturers present has thrown open vast opportunities with extreme cost competitiveness for small and medium businesses. China supplies organizations are more than willing to partner with US SMEs that are willing to take advantage of Chinese B2B edge. Professional supply chain management companies are assisting businesses with identifying China (globe) sourcing, vendor assessments, and pulling off supplier agreements.
Not many Chinese companies used to attach importance to formal demand forecasting for inventory and capacity provisioning. Perhaps this is the reason for Chinese manufacturers’ having case-case transactional relations with their vendors which casts a question mark on transparency. You should prepare to offer executive management support at appropriate organizational level for effective running of the China sourcing venture. Establishing an effective supply chain is another high priority area within China sourcing which falls on your responsibilities. What you possibly can’t forget is that, the continuity of China sourcing rests a lot on knowledge and understanding of the Chinese markets.
Without questioning the reliability of Chinese suppliers when it comes to delivery of goods, which they can control, you must be prepared to appreciate the lack of exposure they have with regard to monitoring the shipments that leave their factories.
China sourcing succeeds not just out of cost difference but by involvement through the entire cycle of sourcing.
It is true that China sourcing helps keep inflation in check across industries; and when coupled with export restrictions, it makes a lot of economic sense.Bottlenecks due to congestion at ports in West Coast of North America have proven expensive for importers engaged in China sourcing. Despite all these, the force that drives American importers to Chinese sourcing is the China manufacturers’ willingness to adapt western quality and safety standards, only to meet ‘the requirements’ on China sourcing. Many Chinese organizations with good sourcing mechanism and specializing in China sourcing can be hired on call to identify and qualify the source and the product the first few times.
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