Forging a Clear Path to Managing Supplier Risk

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Mary E. Shacklett
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Re: Supplier Risk?
Mary E. Shacklett   4/15/2016 1:17:40 PM

Thank you, John.

There are always many sides to each question.


From this standpoint, purchasers can heighten some of their risks through their own behavior during negotiation--an excellent point. Mary

Joh Benito
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Stock Keeper
Supplier Risk?
Joh Benito   4/15/2016 11:05:54 AM

My personal View is that we need to be careful when we generalize this topic!

I have seen in China, Large Chinese companies doing an excellent work in providing overseras clients with the service they need (i,e. Apple, Samsung, H & M, Zara, etc.)

Why? Because these O/S customers are critical to their operations and the local management knows and understand the implications of not providing EXCELENT SERVICE.

However, I have also seen the Overseas Purchasing / Sourcing Managers from large retailers in the USA and Europe coming to China and trying to negotiate to get the price they want! In these cases, I have seen many containers of goods going to waste because local suppliers in trying to make a profit reduce the quality of the product.

In this case who is at fault?

A case of: "You cannot have your cake and eat it too!"

I strongly believe that a well informed / smart buyer will know how far to push!

Below that point there will always be a risk!!!

For what is worth!!

John Benito.


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