Safe sourcing in China and KPI in selecting suppliers

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SAFE SOURCING IN CHINA AND KPI IN SELECTING SUPPLIERS Ben Chu, SAOS Founder - 15 years of experience in China Sourcing, Supplier management - Previously worked in 3M, Black & Decker, EADS in their Asian operation capacity. - Found of SAOS HK sourcing, providing fix-cost sourcing service to its European clients

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How dangerous it could be when sourcing from China? No matter what answer it is in your mind, following those tips from my pro-long sourcing experience in South China Pearl Delta Region would help to make sure you sleep well.

Transcript of Safe sourcing in China and KPI in selecting suppliers

Page 1: Safe sourcing in China and KPI in selecting suppliers

SAFE SOURCING IN CHINA AND KPI IN SELECTING SUPPLIERS

Ben Chu, SAOS Founder

- 15 years of experience in China Sourcing, Supplier management- Previously worked in 3M, Black & Decker, EADS in their Asian operation capacity.

- Found of SAOS HK sourcing, providing fix-cost sourcing service to its European clients

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Buying from China: usual feedbacks

“Usually, delivery risks are not communicated until too late”

“Unable to see the real situation. I have to rely only on my supplier’s information.”

“Poor quality is usually found after arrival. Even worst, we are unable to prove or to identify whether the problem is coming from supplier or transport”

“Hard to negotiate anything. Unable to open higher level business discussion with my supplier’s contact”

“I cannot ensure the quality improvement plan is really in place, although they said YES in all meetings”

“We are buying everywhere from China, and delivery cost is difficult to control”

“I see from exhibitions, my supplier has better products, but they don’t inform me”

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Challenge & Risk

Longlisting•Scam?•Do they make this product?•The “contact person” valid?•Are they just trader without value?

Shortlisting•Do they meet our spec?•Do they have the right process for the work?

•Do they really know what we want?

•Can I meet my price target?

Selection•How do I make sure I buy at a reasonable price?

•How do I make sure the product’s compliance is ok for the target market?

•How do I protect my benefit legally?

•How to negotiate with Chinese?

New Product Industrialization•How to ensure right quality and delivery target?

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SAOS Anti Scamming Solution

Custom Data

Use of custom database like Panjiva to check for past activity

Chinese Gov.

register info.

Check upon government public

database for register information

Phone interview

Call, talk and evaluate by experience

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SAOS Sourcing Process

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Shortlisting and Selection

Shortlist of highly relevant suppliers

Supply Chain rationality

Commercial offer

Technical competence

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New Product Industrialization

• Industrialize your product from design to final product ready to be manufactured.

• Risks: • Production efficiency• At quality target• At cost• At delivery deadline

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Safe Suppliers

Real trading Experience

Product safety

compliance

Reasonable production workflow

Pre-audit

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Safe Product

• Product that fully complies with targeted market regulation.

• Product that can be imported directly from China without safety risk.

• ProductIP database as a state of art source of compliance information

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