Line of Departure

Musings of a US Army reservist and China expat deployed to Iraq

Sunday, July 1, 2012

Doing business with Chinese suppliers

Everyone hears about how easily it is to get cheated in China by shady suppliers.  My experience, however, is that it isn't so much the out and out cheating that makes dealing with suppliers frustrating, but how resistant they are to change, even if it benefits them.  Here's a typical example:

We work with a dehumidifier distributor for TCL to supply our clients dehumidifiers.   We do all the upfront sales and tell the distributor what amount to collect and when to deliver.  They just take the money and fulfill the order.  Pretty easy for them, we get the difference between the wholesale price and retail and everyone's happy.

About 8 months ago, a client reported that a defective unit was delivered to him.  Turned out to be a small faulty door, and we fixed the problem pretty quickly.  A short while later, another client complained that her unit had problems upon delivery and the company swore she had caused the damage.  I told my supplier that it would be best if the deliveryperson could unbox the units and check them onsite just to make sure they worked.  This would save a lot of problems for both of us.  My supplier contact agreed to this.

Two months ago, another problem, same door issue.  Today, a unit was delivered apparently completely defective.  The product quality problems are a problem, but not the biggest problem because the warranty is the longest in the industry and they have door-to-door service.  What gets me most frustrated is that we had worked out a solution that was little effort (maybe 5 minutes extra effort?) and benefitted both the supplier and us.  And then, still the supplier is unable to or unwilling to put this into action and we keep having the problem.  It's extremely annoying that most Chinese suppliers won't get in front of a problem, but would rather deal with the problems once they happen.  And that process change doesn't occur unless you chase it down and micromanage that it happens.  Finally, that the only way you can enforce that is to threaten something bad if they don't (in this case, if this happens again, we will switch distributors).

Thanks for letting me vent.  Is this just Chinese vendors or do you all run into the same things back home?