Monday, April 28, 2014

The China Question


Fact: Some people are reluctant to buy bearings manufactured in China. When you consider headlines about tainted dog food and counterfeit consumer goods, who could blame them? The truth is, after more than 25 years of selling bearings manufactured in China, dealing with “the China question” is still the biggest challenge we face.

While it’s certainly true that some companies in China exploit their distance and labor to take advantage of unsuspecting customers and consumers, it’s also true that some companies in some sectors have implemented quality assurance processes that rival – and possibly even surpass – those used in Europe and the U.S.

Indeed some companies (to update a recent phrase) have been deemed “too important to fail” by the Chinese government; their success on the global stage is a matter of national pride and international credibility. The optics industry is a good example. High precision ball bearing manufacture is another.

The Chinese government has spent lavishly to update its manufacturing sector with state-of-the-art machines and instrumentation. And they’ve invested just as lavishly to educate and train their people to use them. You just need to know where to find them – but where do you start?

COREDEMAR has spent decades creating our network of China-based suppliers, forging relationships that for the most part have endured for as long as we’ve been in business. We’ve been able to do so by following four simple rules:

1. Establish Standards.

Standards should encompass product AND process and should include such detail as the number of machines vs inspection apparatus on the shop floor, number of production staff vs quality assurance personnel – even inspection schedules. You need to know what you’re looking for before you start looking. If a supplier can’t meet your standards, they can’t be in your network. Period.

2. Meet every partner, face-to-face.

I’m not talking about Skype; I’m talking about plane rides. In a modern, interconnected world, there is still no substitute for face-to-face interaction – and it’s still the only way to verify that your standards are being met. And when you’re dealing with companies in China, meeting in person is the only truly reliable way to get a sense of the intangibles that separate good suppliers from great partners.

3. Invest time and energy in the relationship.

Consider the added value to your business when your suppliers know intuitively what your customers want? It’s not enough to explain “what you want” and “when you need it”; take a few minutes to explain the “why” and discuss the “how.” This doesn’t happen with the sort of transactional relationships typically associated with Chinese manufacture; it happens when a relationship has been cultivated with patience, over time.

Note that a supplier’s willingness to manufacture to your standards and engage on relationship building is an important commitment. It’s up to YOU to reciprocate with your loyalty. In other words: once you’ve established a good working relationship don’t simply leave for the next one with a lower price.

4. Don’t be afraid to demand what you want.

You have to be comfortable demanding things your way… and it goes without saying that you also have to have confidence that your demands will be carried out. A strong supplier relationship can withstand the most demanding circumstances and more often than not transparency is the critical success factor. This has been the key to COREDEMAR’s ability to sell on service and quality while limiting the headaches sometimes associated with doing business in China.

And that’s basically it. Follow those four rules, invest a few thousand hours and a few thousand frequent flier miles to create your own supplier network and you’ll be buying bearings manufactured in China like a pro… Or you could CONTACT COREDEMAR and let us buy them for you today!

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