the abc of sourcing for large and medium sized buyers
DESCRIPTION
Michael Bellamy, Operations Director at PassageMaker delivered this presentation at the 2013 Australian International Sourcing Fair. The annual exhibition showcases a range of products from fashion, home and textiles. Attracting hundreds of exhibitors and thousands of visitors, Australian International Sourcing Fair incorporates the co-located China Clothing and Textiles Expo as well as a range of specialty feature areas. For more information, please visit the event website: http://www.sourcingfair.com.au/TRANSCRIPT
Introduction to the conference series:How to manage the supply chain? = ABC of sourcingJust starting? Small order? = Small Buyers StrategiesHow to find a supplier or service providerRound table discussion
Today’s Agenda:1. Brief intro the speaker2. Establishing trust in business relationships3. Communicating regularly & effectively with your
supplier4. Linking your payments to performance5. Key terms and conditions6. Q&A
Sourcing/Purchasing Agent
www.PSSchina.com
PassageMaker Sourcing Solutions
CSIC is a not‐for‐profit organization.
Video Tutorials
Ask‐the‐Experts Service
Buyer Blogs
White PapersMonthly “best of CSIC” mailing
www.ChinaSourcingInfo.org
Managing Expectations
No need to spend a lot of time on cultural differences
Generally speaking, open to international business practices, your cultural understanding is not a pre‐requisite.
Business FirstLittle language goes a long way
Very forgiving of cultural mistakes
Establishing trust in business relationships
Be more than a PO #
Align the visions
“Carrot and stick” works but must be realistic to be sustainable
Communications
Australian Buyer Asian Supplier
Paris or Bali?
Professional Project Management 专业的项目管理
Fixed schedule for regular updates 制定计划定期进行信息通报Be open about problems and solutions 坦诚公布问题及解决方案a. Task 任务b. Current Status 当前进度c. Deadline for action item 实施项目的截止日期d. Who is Responsible for Action Item 实施项目的负责人e. Due date for next update 下次通报日期f. Date of last update received 收到最近一次通报的日期g. Buyer Comments 买家评价h. Supplier Comments 供应商评价i. Additional Notes 其他说明
Professional eMailCommunications
专业的邮件沟通
Communicating QC expectations:If you don’t state exactly what you want, you will get exactly what you didn’t ask for.
“give me top quality”“everybody know the standard”
Example: Fire Truck Toy
8 lessons learned the hard way during my 12 years in China:
1. 3PQC links payment to performance2. Have a contract & state lead times + penalties 3. If worried about IP, consider a “black box”4. China as legal jurisdiction of contract enforcement. 5. Payment Terms are not Incoterms (Beware of ExW! Quote FOB
China port during RFQ)6. Define the warranty terms in advance.7. Review the written QC Plan (reference: “PQM” template at
www.PSSchina.com)8. Company Name on Contract = Bank Account Information =
Name on Factory Gate
www.ChinaSourcingInfo.org/book
Includes templates forPO, Supplier Contract,Factory Audits, QCguidelines, RFQ and more
$150 USD on line$100 AUD at the booth
If take away just two things…
Link Payments to Performance
name on account = name on contract = name on the wall/ biz license
CSIC is a not‐for‐profit organization.
Video Tutorials
Ask‐the‐Experts Service
Buyer Blogs
White PapersMonthly “best of CSIC” mailing
www.ChinaSourcingInfo.org
Inspection Services & Factory Audit services (3PQC)Tool & Die Shops/ Tooling Stewards
Online Supplier DirectoriesCompany Formation
Engineering Outsourced Accounting
Due Diligence Sourcing/Purchasing Agents
Dispute Resolution3rd Party Logistics (3PL)
LawyersCollection Agents
LogisticsBusiness Intelligence, Investigations, and Surveillance
www.SourcingServiceCenter.com
NEW: www.SupplierBlacklist.com
Stop by boothE16&
Check out the other seminars at the show