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The China experience can go sour when procurement fail to assess the fit between the requirements for purchased components, and the realities of the Chinese supply chain.
Costs and wages are rising fast in large cities, but moving inland makes shipment scheduling more difficult, and more costly because of poor roads and the lack of developed logistics infrastructure.
Another challenge is a lack of understanding of how business in the West is done. Western companies require a supplier to provide a lot of information about its operations before deciding to do business with a vendor. Chinese suppliers are often cautious about providing detailed information about their operations, and information provided can be hard to validate.
See also section 13 - engineering/technical quality
See also section 16- logistics and infrastructure. |
