LCCS interview Part 2

April 13th, 2007 at 08:22am David Bush - Iasta

7. What about language issues? Americans generally only speak English.

For India, suppliers tend to have good written English skills. Spoken English can be difficult because of different accents and because of poor telecom connections. A US buyer unfamiliar with speaking with people from India will need perhaps 5 or 10 hours of experience speaking on the phone with people in India before finding it easy to communicate by phone.

For China, suppliers tend to have working written English skills. Email serves as a good medium for communication. Phone discussions are more difficult – Chinese suppliers may have poor English skills, and cultural issues may preclude a meaningful conversation (e.g. a Chinese supplier may say “yes” to mean “I hear you” rather than to mean “I agree”).

8. Are there common “red flags” we should know about before selecting a LCCS supplier?

A big one is if the supplier has a lack of experience providing material to the West.

9. When a company works with a 3rd party vendor to help identify, qualify and select a LCCS supplier, what range of deliverables should they expect?

The depth of service varies depending on the needs of the buyer. A buyer new to LCCS sourcing may want the 3rd party vendor to handle.

a) Getting information on suppliers through Requests for Information
b) Eliciting quotes
c) Conducting preliminary site visits
d) Hosting US buyers to visit finalist suppliers
e) Helping conduct final negotiations
f) Helping with design
g) Conducting first part approval
h) Conducting production run quality audits
i) Arranging transportation to the US
j) Arranging customs clearance
k) Arranging transportation from Port or Entry in the US to buyer site

10.What happens if something goes wrong? Can a 3rd party vendor help?

The 3rd party vendor can definitely help, especially if the buyer is new to LCCS sourcing. The 3rd party vendor can work with the supplier or the shipper to resolve production and delivery issues.

11. Are their commodities that should rarely be sourced via a LCCS supplier?

Commodities that are less frequently sourced are those that are expensive to ship because they cube out quickly or because they are very fragile, those that have short lead times, and those that are low volume and require frequent design modifications.

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Entry Filed under: General, Global Supply Issues/Risk, Interviews, Suppliers