Strong Supplier Relationships Deliver Best Quality and Sustainable Cost Advantage

Manufacturing in China is never easy; nothing you have accomplished in the West prepares you to deal with the differences in language, culture and business practices in China. Western companies who think they can compete in China using a Western model will not be successful; Western companies who think and act like Chinese companies have a competitive advantage.

Western buyers, accustomed to high quality, competitive pricing and trouble-free delivery from their Western suppliers, become frustrated when all three will not come together in China without a lot of hard work. Demanding the lowest price often results in compromises on quality; holding a supplier to stringent quality standards will increase costs and often delays delivery beyond promised shipping dates; if you need delivery quickly – particularly on a new project – expect high price and poor quality.

The capabilities of Chinese manufacturers run the gamut from poor to outstanding. Outstanding companies, typically located in the major manufacturing areas of Shanghai, Shenzen and Guangzhou, are indistinguishable from their Western counterparts, and seldom offer “best” pricing.

To overcome these challenges, China Business Network employs a unique strategy of identifying, pre-qualifying, and continuously developing indigenous Chinese manufacturing companies, oftentimes in the rapidly developing inland provinces, as partners for our Western clients. These extensively researched and thoroughly audited Chinese companies – what we call Strategic Manufacturing Assets –have solid capabilities in one or more manufacturing disciplines, and a strong commitment to long-term, mutually beneficial personal and business relationships with their Western partner.

CBN works only with “good” Chinese manufacturers, implementing best manufacturing practices and continuous quality improvement to help turn them into “great” suppliers capable of meeting Western customer demands while providing globally competitive pricing.

Interaction between the Western and Chinese companies, carefully guided and nurtured by our Chinese engineers and project managers, are based on relationships rather than transactions and elevate the typically adversarial buyer – seller relationship into one of mutual respect, shared vision and demonstrable growth opportunities for both parties.

Unlike equity-based joint ventures, our "win-win" strategy benefits all parties by giving each what they need most for continued success: our Western clients gain non-capital intensive manufacturing capacity, a sustainable cost advantage and access to the vast Chinese industrial market; Chinese partners gain valuable management and technical skills and access to world-wide markets to grow their companies.

China Business Network is the only organization which utilizes this proven, efficient and non-capital intensive strategy for successful manufacturing in China.

An additional benefit of developing strong proprietary relationships with indigenous Chinese manufacturers is that it provides a platform and the necessary Guanxi for Western companies to sell directly into the Chinese market.