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
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”
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?
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
SAOS Sourcing Process
Shortlisting and Selection
Shortlist of highly relevant suppliers
Supply Chain rationality
Commercial offer
Technical competence
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
Safe Suppliers
Real trading Experience
Product safety
compliance
Reasonable production workflow
Pre-audit
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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