The Ultimate China Sourcing Management Survey

Understanding strengths & weaknesses of the China Sourcing system

We know what works and what does not, but we do not do a SWOT analysis of our sourcing capabilities.We have done a SWOT analysis of sourcing capabilities and keep this in mind when sourcing new productsWe systematically study our whole sourcing approach to maximize our strengths and minimize our weaknesses,We use our SWOT analysis to constantly improve and expand our ability to source the products we need.

Planning the China sourcing program

We plan based on immediate needsWe anticipate our sourcing needs for some of our productsWe forecast the sourcing needs and required resources of all of our products on a quarterly basisWe anticipate our sourcing needs and resources on a twelve months basis and review them at least quarterly

Placing orders

We normally place orders using simple emailsWe use common sense to place orders, not always using contractsWe have procedures for contracts but don’t always follow themWe follow rigorous procedures for order placement and always use sourcing contracts

Managing the program

We leave the management of the program to the agent/factoryWe loosely supervise the program in conjunction with the agent/factoryWe closely supervise the program at a distanceWe closely supervise the program and review its performance against key indicators on a regular basis

Risk and Investment

Our sourcing investment is factored into our FOB pricing, our risk is limitedWe understand there are costs and risks in sourcing but do not measure them.We have evaluated our risks, and we keep track of all of our sourcing costs.We carefully measure and track our sourcing investment; we understand the risk/reward ratio and we are focused on maximizing the return on our sourcing investment.

Working together as a team

We do our best to liaise with the China side of the sourcing teamThe home side team has a clear vision of our sourcing targets and communicates with the China side.Both the China side and the home side team understand each other.Both the China side and the home side team have a clear vision of our targets in writing that has been properly communicated and is shared by everyone.

Training staff

We hire sourcing staff based on their previous experience and do not need to train themWe train new staff when they join, mostly through a mentoring systemWe recognize the challenges of sourcing, the importance of processes, and we train and qualify all sourcing staff based on specific training modulesWe train all sourcing staff based on specific training modules and reinforce the training every week

Cost fundamentals

We understand the main cost elements of the products we buyWe understand all cost elements of the products we buyWe understand all cost elements of the products we buy and we analyze costing of alternative materials and processesWe understand all cost elements of the products we buy, we analyze costing of alternative materials and processes and we review the cost structure of all key items regularly

Benchmarking

We do not benchmark our suppliersWe benchmark initially, when developing new productsWe benchmark once in a while to make sure they are competitiveWe benchmark regularly all key suppliers, and they know it

Planning

Our quality plan is limited to sample approvalWe are aware of all key quality elements of our product and we have a plan to address themWe are confident that we are able to control all key quality elements of our product because we have a written plan to address each quality assurance step.Our written QA plan ensure conformity because it has been shared with the factory QC manager and is included in the order placement process.

Specifying

We do not have detailed written specifications for each productWe have general written specifications for each productWe have detailed written specifications for each product, but do not make this part of the contractWe provide the factory with detailed written specifications for each product and make that an integral part of the contract.

Preventing

Verifying

We prevent quality problems by making sure the factory is experienced in the product.We pre-qualify all factories and confirm their ability to make the product in conformity with our requirements.We require all pre-qualified factories to confirm in writing their ability to make the product in conformity with our requirements.Both our quality control team and the pre-qualified factory have a clear vision of our quality requirement in writing that has been properly communicated and is shared by both.We do not inspect products that we feel are “safe”We inspect most of the shipments but not the routine re-ordersWe inspect all of our products in the same wayWe have a pre-established, written inspection specification process in place for each product and we inspect every shipment

Predictability

We place orders early to avoid getting them late.We use flow charts based on empirical data to track all aspects of the supply chain of key products.We use flow charts to track all aspects of the supply chain of key products and have shared and verified them with each contributor.We have a proven system to ensure on-time delivery. It has been named and visually illustrated and everyone is adhering to it.

Sourcing Systems and Execution

We have some processes written downWe have written down processes for all key operations and we review them frequentlyOur core sourcing mission is clear and our systems and processes reflect that.We have a proven process for sourcing our products with factories. It has been named and visually illustrated and everyone is adhering to it.

New products & ideas

Our current sourcing program never give us product ideasWe sometimes discover new products & ideas when we travel to ChinaWe actively seek and reward the team for new products and ideasOur current sourcing program constantly provides us with new products & ideas.

Qualifying suppliers

We do not have a system for pre-qualifying suppliersWe have a broad-spectrum process for pre-qualifying suppliersWe have a proven process to pre-qualify and audit all suppliers based on a range of pre-set factorsWe have a proven process to pre-qualify and audit all suppliers based on a range of pre-set factors which includes social and environmental responsibility.

Knowing the suppliers

We do not know the supplier well, we are only interested in their productWe know the supplier and their ownership structureWe have met the owner a few timesWe have direct, personal access to the owner of the factory.

Interacting with the suppliers

We use a trading companyWe use trusted agentsWe communicate directly from the USAWe communicate in Chinese with our own China-based employees

Communicating with Suppliers

Most of our communication is oral, in English with the agent/factoryMost of our communication is written, in English with the agent/factoryWe communicate in Chinese with the agent/factory from the USAWe communicate with the factory through our own Chinese speaking staff in China

Knowing the competition of our Suppliers

We have not identified key competitors of our suppliersWe have identified key competitors of our suppliers but do not contact themWe know all key competitors of our suppliers and have contacted them, but do not maintain regular communicationWe know all key competitors of our suppliers and maintain regular communication with them

Your competition

We do not know our competitors’s China sourcing systemWe know our competitors’ China sourcing strengths and weaknesses and their system is generally better than ours.We have analyzed our competitor’s sourcing method and data and we know our sourcing system is better than theirs.We are using the knowledge of our specific advantage over our competitor’s sourcing methods to constantly innovate, improve and increase our lead.

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