Managing Your Supply Chain in China- 大数跨境

Trustiics 诚汇达

2021-12-03

导读：What are some of the things to consider when building and managing your supply chain in China?

Due diligence helps evaluate a company’s authenticity.

For example, to confirm whether potential business partner is in good standing, legally qualified to do certain businesses, and have the capital required or simply a shell company.

Are you importing products made in China through exporters? While it is convenient to rely upon exporters, the convenience comes at a price.

Less control = More risks

When you have no control over the manufacturer, you may run into unwanted surprises.

For example, when the overseas manufacturers are fully booked, you would not get enough supply, or your orders can get delayed. If a dispute occurs involving the Chinese exporter or anything happens to it, your business is at risk.

Hence, business owners should manage their supply chain by increasing control.

Direct relationship with manufacturers

Means more control

You should consider moving away from the importer-exporter relationship. Instead, you want a business partner who can help you build a supply chain under your control, such as an OEM or manufacturing contract.

You will have more access to important information such as suppliers and the price of raw materials. Although you may bear the cost of price fluctuation in raw materials, in return, you will have a reliable supply chain under your own control. In addition, your business partner’s interest is much more aligned with yours.

Foreseeable collaboration

Means more control

Collaboration among multiple suppliers is critical in managing the international supply chain. Without some degree of control over all the main suppliers involved, it is hard to guarantee on-time delivery from overseas markets.

Therefore, signing a multi-party master agreement with all suppliers along the supply chain is something to consider. Such agreements clarify each party’s responsibilities such as the timing for delivery, quality standard and payment.

For you to have a contract enforceable against the relevant parties in China, it is always advisable for an experienced local lawyer to draft or review the contract for you.

Due Diligence

Means more control

For you to know who you are dealing with, it is critical to get some basic but very important information of the potential partners checked.

For example, you can engage legal professionals for due diligence service to confirm whether your potential business partner is in good standing, legally qualified to do certain businesses, and have the capital required or simply a shell company.

This legal tip is provided by Mary Mao

To learn more insights from this lawyer or to consult with her directly, simply register on Trustiics.com and book a call with her.

"China Legal Tip" is a weekly post provided by the best business lawyers in practice. Trustiics helps international SMBs navigate China's complex legal and regulatory framework.

Access vetted, first-tier English-speaking lawyers and get all your business issues explained and solved now!

【声明】内容源于网络

Trustiics 诚汇达

1234

内容 17

粉丝 0

Trustiics 诚汇达 1234

总阅读0

粉丝0

内容17