A blog based on podbeans podcast.
Halloo everyone, today, I am going to discuss about Chania supply chain policy, which one may be help you out too.
During the CNY period manufacturing in China (and other parts of East Asia) is effectively on hold for several weeks, so during this time importers have a chance to ‘Spring Clean’ their supply chain, finding and eliminating risks and also looking for untapped opportunities to make improvements, costs savings, and more.
So, based on his decades of experience in dealing with Asian suppliers, here’s an interesting checklist from Renaud for you to work through over these few weeks.
Is assembly closer to home using Chinese components a workaround for importers who want to move some of their supply chains out of China?
If substantial transformation takes place you can say products are ‘made in’ another country other than China which could be beneficial, but a very long and complex supply chain also has its own issues .
Consolidate and strengthen relationships with key suppliers – few key suppliers rather than many, and managing them differently – more hands-on management, helping improve operations, etc. Giving talented suppliers (new or current) with R&D capabilities more business and co-developing new products with them helps you to gain closer relationships and can help form exclusive relationships with great suppliers. IKEA, for example, also sends in engineers to help their key suppliers ‘level up’ and improve quality etc, so this is another way to strengthen relationships.
Rank & yank: what about replacing the lowest-performing factory every year? – grade suppliers based on their results and capabilities and encourage some turnover amongst the poorest performers. Why you need to take a zero-tolerance approach to a supplier with a history of poor performance.
Do you have legal agreements in place with suppliers? – if a legal and enforceable manufacturing agreement/contract is in place importers shouldn’t need to fear switching suppliers as much. If you didn’t put such an agreement in place it’s not always too late, Renaud gives some tips on how to reason with your supplier and persuade them to sign one.
Intern YSSE Content Writing