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Managing Supplier Relationships Across Borders Print

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Working with distant suppliers.

WHAT MAKES IT DIFFICULT

Distance Time zones Language Different expectations Limited recourse if things go wrong

WHAT TO ESTABLISH BEFORE ORDERING

That the supplier exists and is what they claim.

HOW

Verification of registration References from other customers Third-party verification services Visiting, for substantial relationships

WHAT TO START WITH

A sample order.

WHAT TO CHECK ON SAMPLES

That they match the specification That quality is consistent across the sample

WHY ACROSS THE SAMPLE

A single perfect item proves little.

WHAT TO AGREE IN WRITING

Specification, precisely Quantity and tolerance Price and terms Delivery term and date Packing requirements Inspection arrangements What happens if goods do not conform

WHY PACKING SPECIFICALLY

Inadequate packing causes losses that are difficult to claim.

WHAT INSPECTION ARRANGEMENTS TO CONSIDER

Pre-shipment inspection by an independent party.

WHAT IT PROVIDES

Evidence of what was shipped, before payment.

WHAT TO DO ABOUT QUALITY PROBLEMS

Document them immediately, with photographs.

WHY IMMEDIATELY

Claims have deadlines and depend on evidence.

WHAT TO ESTABLISH

Who bears the cost of rejected goods.

WHAT TO BUILD OVER TIME

A relationship, which is what produces flexibility when you need it.


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