Management, Control & Quality Assurance
With the challenges of distance, language and culture, many UK companies are tempted to take a “hands off” approach to transactions and operations in China. In fact these challenges increase the need for proactive engagement. A “hands off” approach allows problems to develop, often to the point where they become major issues.
There is no simple solution, and successful UK companies use a variety of techniques. These can include extensive travelling by UK personnel, a controlling or liaison presence in China (such as using CBBC Launchpad), or providing extensive training and good management of Chinese staff. It is important not to allow milestones to slip by, whether these are attending a board meeting in a Joint Venture or arranging a quality audit at a supplier.
Sourcing products from China, especially from a supplier inexperienced in dealing with foreign companies, requires particular attention to detail. Specifications are sometimes not understood and need to be very clearly explained and agreed, and a quality management system needs to be agreed and put in place with the Chinese company. Many consultancies will offer to undertake all or part (eg the quality management aspects) of this process on your behalf. A list of consultants can be found on the China Business Services Directory at www.cbbc.org.
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