Many foreigners facing problems with China businessman. Problems like goods hold back, price mark up, defected goods, contract term, shipment mode, payment term, nominated and trademark, so how to attack and defend on these empty promises?
Goods hold back often perform by suppliers either they demand to change payment term to cash on delivery (COD) instead 30 days payment or due to market inflation costings not justify with original quotation forcing you to mark up the buying price. Sometimes rumors in the market will cause supplier change to COD so beware on your internal staff. But if this supplier was recommended by your staff push the responsibility back to him because he definitely receive commission from the supplier, to maintain his post and protect his rice bowl he will settle it, let the locals deal with the locals! This tactic could also use on price mark up by suppliers, remember whenever boss negotiate price with locals sure lose, but using your local staff to negotiate price could even further discount because the locals have to prove to you on their capability! Some cases might be you try to deduct supplier liability on past order hence they hold back your goods, remedy is either you receive your goods first then make deductions or place new order to another supplier.
Price mark up by suppliers often due to your payment term not on time. When such cases happen you have to ask your local staff to filter the scenario getting some sympathy but make sure you fulfill your promise on next payment term. Remember always set a standard price to your local purchaser to fulfill and pressurise him as a habit to maintain your factory offer price, quality and delivery. Always dont rely on 1 supplier, more choices more comparison for you to set a standard price and also maintain at least 3 suppliers on same ongoing material purchase, you will use it during crisis, why? Every supplier would encounter peak season so they will also prioritise on big client and high buying price, if you are not the major buyer and offer low buying price, would the local suppliers manufacture your goods first? They wont tell you but you must have informants, use your local purchaser visit the supplier factory daily to monitor their production to ensure your quality and delivery is safe. Dont be so stingy on your purchaser, weigh the importance, raw materials delay causing overtime to rush goods or your workers being held up for lack of material (停工待料), or maybe air freight charges, which losses is higher, your production or purchaser transportation allowance?
Defected goods deliver to your factory always happen, could be coloring not match, lab test failure, exceed defects tolerance, incorrect specification, bad quality, all these are common problems found and always only found out when production starts. Your storekeeper must go through training through frequent monitoring and examined by your supervision or your trustworthy, cannot be your purchaser to prevent him double-crossing with the suppliers. When defects found reports to supplier within 24hrs for replacement, get a new delivery date if jeopardise your production schedule request for deduction. If no replacement dont return the goods to them and on hold all payment against this supplier forcing them to bear the losses incur, if the supplier is nominated blow up this issue to your buyer with hard evidence through email with photo taken, sure you get replacement, shipment extension or compensation! No deductions supplier will never treasure their mistake and penalty, but this would remind them always prioritise and pay attention on quality control on your company purchase in long run! Sometimes during peak season supplier force to sub-contract to meet your delivery and always the defected goods rating is higher, to protect yourself always state in your contract term “sub-contracting is not allowed” and once if is found the penalty is cancellation of entire order, full losses on suppliers! On the other hand with your local staff frequent visits on suppliers’ factory sub-contracting violation could be controlled.
Remember always there is buyer and seller, client buy goods from factory, and factory buy raw materials from supplier. If your client is picky you must twice picky towards your supplier chain, is the same principal, think about it on my next article on “How to deal with China suppliers #2″ but on condition after I receive at least 10 comments, a business deal!
Copyright protected by Digiprove © 2010 Cyrus Chang
Popularity: 100%
Related posts:
- How to deal with China suppliers #4 Number of View: 4759 Nominated supplier by client always is a tactics to protect their trademark on brand or technology, hence always playing monopoly whereby seller control buyer price, estimated...
- China Office Politics #2 Number of View: 6472 If you are the Director of the company how would you control your local subordinate who are the head or middle management of different division? There...
- China anti-corruption tactics Number of View: 3002 So finally more than 10 comments on my previous article “China bribery tactics”, therefore I will introduce to you as promised on some tactics in anti-corruption....
- China factory survival business strategy Number of View: 3596After reading on my previous article on “China-factory-survival” in management scope now we will discuss on future business scope for China factory survival! Many China factories rely...
- How to boost China Productivity #1 Number of View: 3739There is always peak and off-peak season throughout the year for factory and is always a challenging and tedious task to the production manager to boost productivity....
- How to relief China Tax #1 Number of View: 4893No one wants to pay more tax, government would not reward you a prize annually, or giving you a discount on your next taxation, or maybe congratulate you...
- Workers recruitment strategy Number of View: 2801 Many factories currently facing labor shortage due to economic inflation, increasing workers’ burden hence many locals rather stay at hometown searching job because their expenses burden...
- Effective ways on China workers recruitment #1 Number of View: 7593Recruitment always a headache to factory, worry on skilled or unskilled workers. So how does factory Human Resource (HR) assist production on monitoring and evaluation on 1st...
- China manufacture after Japan earthquake Number of View: 3289 There would be major changes in China industries because Japan imports will become “Made in China” and more exports to Japan market hence major increase and...
- China Manufacture Local Sales Strategy #4 Number of View: 3937Last strategy is very legal and would not affect your mother wholly foreign-owned enterprise, is similar to 1st strategy but only difference is you could own the...
- China Manufacture Local Sales Strategy #1 Number of View: 11196In total there are 5 methodologies in local manufacture and local (domestic) sales strategy, each would be explained in pros and cons to suits in different industry requirement...
- How to setup factory in China #1 Number of View: 3739Many foreign investors facing problems or get conned in setting up manufacture plant in China, why? I will discuss some critical area for your reference base on...
- How to solve China minimum wages increase Part 1 Number of View: 3550 Many companies will try to cut cost to justify wages increase or achieve more business to balance their profit. Either way is a positive path but...
- How to setup factory in China #2 Number of View: 10015Setup factory most important is who would you assign to responsible all legal issues and monitoring factory progress, this person would be your juridical person (法人) in...
- China economic strategy Number of View: 3106 China had been moving ahead of many countries including USA, how they make it? Since China reform and open their economic to the world, strategy already...
Like





How to retrench China workers
China factory rules and regulations
China price war
Effective ways on China workers recruitment #1
How China cheat foreigner
China Love relationship
China economic strategy
China Quality Control
Why China violate human rights?
China negotiation skills (Cross culture) Part 2
China dinner treat #1
How to supervise China management Part 2
China "Face"
China minimum wages increase
China political strike back
How to setup factory in China #4
How to relief China Tax #2
China Irony Society
China quality purchase
Hey, I searched for this blog on Bing and just wanted to say thanks for the excellent read. I would have to agree with it, thank you again!
Very informative article… Looking forward for more articles on your blog
I hope you have a nice day!
I saw your site on Google, I will come back to visit and refer my friends.
Hey everyone, I’m wondering if anybody has a recommendation about a decent town or city to get a job as a stripper. I just got laid off and I am willing to basically move anywhere great strip club and make some decent. I danced at a strip club here in Houston for a few months and I have stripped at a bachelor party or two
I am 22 years old and have a great body. Anyone have any suggestions about a town with profitable strip clubs to dance at?
hm, understand:)
From my experience and my connections in China, you are welcome to share your opinion too!
In my opinion there’s nothing quite as good as enjoying a good movie anytime I wan’t to chill out. Problem is that most streams tend to be sluggish or even broken that is till I discovered freemoviestreamlinks.com All I had to accomplish was fill in a brief survey and I could view any movie I want to to. With over 10,000 films to watch I was not lacking choice either.
I’m impressed!! Really informative blog post here my friend. I just wanted to comment & say keep up the quality work. I’ve bookmarked your blog just now and I’ll be back to read more in the future my friend! Also nice colors on the layout, it’s really easy on the eyes.
Will i website as much as this, by my web site? I’m likely to gather as much sources of details as i am able.
I’m impressed!!! Really informative blog post here my friend. I just wanted to comment & say keep up the quality work. I’ve bookmarked your blog just now and I’ll be back to read more in the future my friend! Also nice colors on the layout, it’s really easy on the eyes.
Nice blog!
It’s so refreshing to find articles like the ones you post on your site. Very informative reading. I will keep you bookmarked. Thanks!
Admirable blog! I’ll probably be referencing some of this details in my next speech. I would appreciate it if you visited my weblog at
Hi there could I quote some of the insight found in this entry if I link back to you?
Admirable blog! I’ll probably be referencing some of this information in my next speech. I would appreciate it when you visited my blog at
A topic close to my heart thanks, do you have a RSS feed ?
Thank you for posting this, It’s just what I was browsing on bing. I’d a great deal rather hear opinions from an individual, rather than a corporate site, that’s why I like blogs so much. Thanks!
Good entry thanks, like your blog design too. Is it wordpress?
It’s shocking how many information and news come out on a hourly basis.
I Adore it,Excellent Write-up.I am Make a decision to Fit this into use 1 of these days.Thank you for sharing this.To Your Success!
Maintain up the excellent work mate. This weblog publish shows how well you comprehend and know this subject.
Such an amazing Post! I Truly Appreciate reading it, very good insights, the Post is very ell-said. A thumbs up!
success.
Hey, can I link to this post from my site?
No worries.
about A Great deal more new Tips
Very nice i am very thankful for the info. A Wonderful piece of text.
I like this information and it has shown me some sort of desire to have success for some reason, so thank you. Moreover I´m definitely considering blogging these facts in my own blog!
I really love going back to your site to read your story and see more pictures that are really taken with great care. . . . . .
Took me time toward think about every one of of the commentary, however I in reality enjoyed the editorial. It proved being in actuality obliging to me with I am positive to every the commenters here! It’s usually nice whenever you be able to not just be informed, but in addition entertained! I am constructive you had satisfying writing this write-up.
I commonly don’t respond on sites but you contain some high-quality readable post.
I like this info given and it has given me some sort of commitment to have success for some reason, so keep up the good work.
I am glad to come across so numerous constructive information at this point into the article, we need increase more approaches inside this regard, thanks for sharing
I am not actually positive if top tactics cover emerged about things like that, except I am definite that your big job is clearly identified. I was wondering if you offer some registration near your RSS feeds since I would be extremely concerned.
I enjoy the writing relevancy of your site and it does a nice-looking decent job of presenting the info.
“I have been perusing your posts in the course of my smoke break, and I have to admit the whole post has been quite educational and incredibly well written. I thought I would let you understand that for some reason this website does not show properly in IE 8. I hope Microsoft would cease upgrading stuff. I’ve a question for you. Would you thoughts swapping blog site roll hyperlinks? That will be genuinely neat! “
This postis not actually showing up for me, I tried to message you. Could you get back to me about this.
Sweet post.
Keep your posts coming, the fashion marketplace needs more articles like these. I’m a Senior Lecturer in the Cultural Studies department at Central Saint Martins where I’m also functioning on a project for the marketplace. I appreciate this website and will be coming back again.
You are welcome to post your question in my forum or live chat and I will get abck to you asap.
Well done! / Tim
Between me and my husband we’ve owned more MP3 players over the years than I can count, including Sansas, iRivers, iPods (classic & touch), the Ibiza Rhapsody, etc. But, the last few years I’ve settled down to one line of players. Why? Because I was happy to discover how well-designed and fun to use the underappreciated (and widely mocked) Zunes are.
Great counsel I recently find your blog and have been reading along. I thought I would leave my commencing comment. I don’t know what toexposeexcept that I have enjoyed reading. Conscientious blog. I will keep visiting this blog very at all times. Your blog review here w0
Hello to all
I can’t understand how to add your site in my rss reader. Help me, please
Seriously, I really liked reading your message. You have convinced me to subscribe to your blog, but where can I find the RSS feed?
I love the articles or blog posts on your blog but the Rss has several XML issues you need to smooth out. Awesome blog page though!
Good quality article but for some reason your weblogs Code has a couple problems in the Seamonkey v5.03 web browser. I simply wanted to tell you…
I recently wrote an essay on a similar thematic but I see some nice points listed here that I miss in my essay, “ask for change” for example. I really like this one
“I’d like to say that you always offer valid information and I have been an fascinated reader of your site for quite some time. I wanted to say thankyou really
for all the good work you do!”