Richard: October 2008 Archives

This posting launches a new section at the China Sourcing Blog entitled 'On the Ground,' which is written by members of the China Sourcing Unit of THE BEIJING AXIS and based on their direct experiences in conducting sourcing operations on the ground in China.

I am currently involved in some projects to assist foreign clients in sourcing machines and equipment from China, and I can share some of my experiences of the processes of delivery, installation and commissioning.

With the growth of China's equipment exports, the world is becoming more aware of China's relatively advanced technology and strong capacity to manufacture equipment, apart from China's traditional price advantage. However, when foreign buyers look closely at made-in-China equipment, they find that the problems lie in the details. Poor quality paint, bad welding and cuttings all reveal China's weakness in managing the details when compared to foreign brands. Even for packaging design, good foreign suppliers always fully consider users' convenience, while Chinese suppliers sometimes completely ignore the end-users' needs.

Chinese suppliers seem to care more about delivery times and schedules, which is why they can usually deliver on time. However, Chinese suppliers should learn to pay more attention to other factors. In my experiece, when installing and commissioning equipment in foreign factories, the process could often be suspended for safety reasons. Yet Chinese suppliers, if stopped from working, will complain about foreigners' over-cautiousness and 'low' efficiency.

Chinese suppliers are manufacturing equipment as sub-contractors under various world-class brands, i.e. Siemens, Demag, Danielle, etc. This is evidence of the growth of Chinese manufacturing capacity. Yet what Chinese suppliers still lack are 'soft skills' that would significantly improve professionalism and project management.