Posted on / by Jesus David Cano Romano / in

How to Build a Procurement Chain with China-Based Manufacturers and Suppliers

Are you thinking of working with several China-based suppliers? This can be a wise business decision, but only if you are able to build a reliable procurement process. The key is to find trusted suppliers and establish a reliable buying and delivery process with them. Only with a dependable procurement process can you truly reap the cost savings and other benefits of outsourcing to China.

The first step to building a procurement process with manufacturers and suppliers in China is to check your sourcing options. There are many procurement companies based in China, but not all of them are a good match with your requirements and goals. Do some research so you can create a shortlist of suitable potential partners. Ask questions such as:

• How many years or decades of trading experience do they have?

• Are they affiliated with leading institutions such as the American Chamber of Commerce in China?Who are their previous clients and were they satisfied with their experience dealing with this company?

• The next step is to negotiate the price and terms of agreement. Remember that negotiating with companies in China is different from dealing with companies in the United States or Europe. Understanding the cultural gap is key to a successful deal. Westerners tend to be straight to the point, while Chinese businessmen tend to beat around the bush—which means you may need more than a single meeting to arrive at a common ground.

You can also hire an outsourcing services provider to act as a liaison between you and your Chinese suppliers. They can help you throughout the procurement process and even assist you in building a reliable supply chain for future orders. Because of their wide network of China-based manufacturers and suppliers as well as their expertise in the field, they can save you serious money in the long run.

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