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Supplier Relationship Management |
“Intercultural management
is
applied science“
- Long-term orientation
- (Decreasing) collectivism
- High uncertainty avoidance
- High power distance
Trust relationships enable smooth business
We build relationships of trust with our suppliers and often work with them for more than one customer’s requirement. In turn, for new requirements, these suppliers often refer and introduce us to new partners. If one of our partner suppliers can provide the product you search for, this typically allows us to respond to your request much faster, to get transparent and fair terms, and to more efficiently manage the whole production based on experiences from previous dealings.
...while not losing the competitive edge
However, in almost all cases, we would still do an external supplier screening and RFQ – the markets in China can change quite fast and we consider it as important to be informed about the competitive landscape as well as the adequacy of cost structures. In fact, such efforts often do not jeopardize our established relationships, because our gained knowledge shared (during negotiation) helps suppliers to better position themselves.
“The aim is to create trustful
win-win
situations”
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Supplier development to achieve better mutual results
Within a project, we also help suppliers developing in order to better meet requirements. For instance, this may include technical training for product quality improvement or process re-design by our design and value engineering team. Also, with our supply chain management efforts, we often introduce the suppliers to better value raw material sources or business partners, thus improving their cost base and broadening their own network. Through constant and constructive exposing to western product quality and service expectations, the suppliers are enabled to broaden their business mindset to increasingly serve international markets.
… and maybe embarking on more advanced partnership models
For clients that are new to China, we do normally not advice to directly invest into own facilities for production outsourcing, but to building up a supplier network first, by placing transactional orders (product sourcing). At some point, these supplier relationships may allow to embark on further mutual business opportunities based on advanced partnership models. This may entail:
- Strategic alliances
- Custom-tailored processes, with process investment
- Interlinked planning
- Frame contracts
- Value managed relationships VMR (to optimize the total cost of ownership TCO)
- Vertical Integration through Merger & Acquisition (M&A).
For further information, please contact us here... |
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Last Updated ( Wednesday, 22 February 2006 )
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