There are significant
challenges when sourcing in China. Language and cultural barriers,
along with unfamiliarity with the local business environment,
can make procurement in China difficult or even remove any cost
advantages gained.
Minimizing the risks and expenditure of China procurement can
prove to be a difficult if not impossible task for companies
with limited resources and no local presence. To find the most
suitable supplier and to ensure the quality and timely delivery
of products, setting up a local (China) office is often a necessity.
This can add to the time, complexity, and cost of sourcing products
in China, ultimately reducing savings and profits.