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What should be included in a manual on doing business in China?

Posted: 2011-09-30

Full Question

What should be included in a manual on doing Business in China? I am writing a manual for our company's sourcing division.

Answer

If you want a comprehensive list of items to be covered, then you may find this table of contents from The Essential Reference Guide To China Sourcing of interest:

Introduction

1.  What the reader can expect to gain & why I decided to write this book
2.  How the book is organized
3.  Assumptions about the reader & terminology
4.  What this book isn't
5.  Disclaimer
6.  Keeping current

Preface by Global Sources COO Peter Zapf

I.   China Sourcing Overview
•  Brief history of China sourcing
•  Looking forward
II.   Managing Expectations
•  Language & culture
•  Business culture
•  How buying back home differs from buying in China
III.   Step One: Sourcing Feasibility
•  Is your product a good match for China sourcing?
•  Confirming availability
•  Door-to-door cost modeling
IV.   Step Two: Finding the Right Supplier
•  Geographic overview
•  Types of suppliers
•  Foreign trade rights
•  Avoiding middlemen - What most China sourcing agents, trading companies and brokers don't want you to know!
V.   Step Three: Organizing an Efficient Request for Quotation (RFQ)
•  Defining the ideal type of supplier for your particular project
•  Engaging potential suppliers
•  Evaluating quotations
•  Picking a winner
•  Options if you need help picking a winner
VI.   Step Four: Face to Face
•  Negotiation tips
•  "Socializing with your Chinese supplier in China"
VII.   Step Five: Placing the PO (Purchase Order)
•  The illusion of communication
•  Setting the road map to success in the form of a well written PO package
VIII.   Step Six: Vendor Management/ Order Fulfillment & Project management tools
IX.   Intellectual Property Protection
X.   Quality Control (QC)
•  Why so many QC problems in China?
•  Understanding QC basics
•  Buyer's quality assurance tool box
XI.   Addition Templates and Checklists
•  E-mail protocol
•  Document revision management
•  International travel checklist
•  Local travel checklist
•  Petty cash
•  Effective conference calls
•  Handling business cards
•  Taxi cabs
•  Factory visit logistics
•  Non-disclosure agreement (NDA)
XII.   What to do when things go wrong
XIII.   Third-Party Support
•  Quality assurance specialists (3PQC)
•  Testing labs
•  Freight forwarders (3PL)
•  Sourcing/purchasing agents
•  Engineering
•  Tool & die shops/ Tooling stewards
•  Business intelligence, surveillance and investigations
•  Lawyers
•  Business formation
•  Online resources
XIV.   Conclusion

Appendix One: Short Articles of Interest

1.  What is VAT and Why Should I Worry About It? By Mike Bellamy
2.  Global Sources' Interview with Mike Bellamy about Audits and Inspections
3.  Paul Hornikx's interview with Mike Bellamy about Options for Third-party Engineering

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