The time when you have to look for a supplier for your business, one country is sure to provide you with a long list of them and the country is none other than China. Whereas, you would have a long list of business names and manufacturers the credibility of those names and specially their products is one that takes away every ounce of the procurement department from your company.
Their isn’t just one factor that may give you headaches but several. The positive factor is that in China you have a pool of manufacturers of every industry and for every product, may it be a denim jeans supplier, outdoor footwear manufacturer or heavy machinery supplier. The negatives are a bit serious and at times they can seriously damage the supply chain for the company’s project. It could be the communication gap, lack of timely responses, cost of verifying the quality of the product and the supplier itself. This all is time taking and costly, thus the procurement department would need to assess its timeline and budget accordingly. You could be in negotiations with a supplier for months and still not end up buying from him and yet you could have a supplier within weeks. It is more of a gamble if you enter here without any research or prior knowledge of how the Chinese Business World operates!
The country has yet managed to grow and the businesses have identified their errors in the business models and now the coming generation possesses, what you call the modern business mind. Businesses here have started to restructure themselves and are working hard to improve the quality as for years the Chinese products have had a doubtful quality tagged to themselves. It is good to see that the country together with the suppliers are working to bring about this positive change.