The "Novice Buyer" Dilemma in China
July 8, 2008 – My friend who philosophizes that supply chain dysfunction in China is due in equal parts to novice Western buyers and Chinese factories, hammered home another “novice buyer” theme today. My friend has long been bemused by his observation that newbie Westerners do not want to buy from other Westerners in China. Instead, these buyers seem to think that they will get better prices and fulfillment if they cut out the Westerner and deal directly with the Chinese factory.
I have heard the stories and know enough about the climate here to issue the following advice: Do not disqualify a supplier merely because it is Western-owned or managed. In general, the Westerner in China will understand your expectations and service requirements much better than will the average Chinese factory (this means you’re less likely to have to do a second run to correct problems from the first run). Sometimes, they will get you a better price too (because as a newbie Westerner in China, you have a large target on your back!).