China - Making Purchases in China

Who Should Attend ?

Buyers, commercial managers, import managers, partners of the company lead to make purchases in China and to negotiate with Chinese suppliers.

Objectives

The aim of this seminar is to significantly improve the participants’ effectiveness in their professional relationships with Chinese contacts, enabling them to be operational right from the start.

At the end of this training, participants will have acquired insights and techniques to:

• Be aware of their own cultural baggage
• Fully understand the context and the Chinese culture
• Analyse possible situations in which misunderstandings may arise and identify ways of communicating
• Reduce stress and misunderstandings
• Decipher and understand decision-making and negotiation processes

Programme Outline

MODULE 1 : PREPARING ONE'S APPROACH TO THE CHINESE MARKET

1. Elaborating a specific Strategy for one's Purchases in China

• Analyzing the country risks: political, juridical and economical risks
• The share of one’s purchases in China
• What products to buy: commodities, components, finished products
• Identifying the key information networks: salons, websites and guanxi
• Defining the pre-selection criteria: place, infrastructure, guarantees

2. Taking a Grasp at Juridical Stakes of Purchases in China

• Contract clauses, penalties and possible appeals in matter of intellectual property, quality respect and delays
• Creating a purchase office in China: selection of structures and formalities

3. Selecting and Estimating one's Chinese Suppliers

• Consulting the suppliers: steps and tools of the call for tender
• The field visit: objectives, estimation measures, result analysis
• Calling on service providers: interprets, consultants

4. Knowing the Specificities of Chinese Communication and Negotiation

• Characteristics of Chinese communication styles
• Adapted communication methods
• Giving face to one’s Chinese partners
• Getting acquainted with negotiation diversity amongst the speakers
• For a consensual negotiation: rules of the game

MODULE 2 : SETTING UP AND MAKING ONE'S PARTNERSHIPS WITH CHINA DURABLE

1. Leading a Negotiation with Chinese Suppliers

• Chinese negotiators’ strategies and tactics
• Reaching a consensus: objectives, progress, results
• Mastering the negotiation delays and dealing with one’s emotions
• Finalizing purchase negotiation: conclusion, legalization

2. Setting up a Purchasing Partnership in China

• Illustrating the partnership types: OEM, ODM, logistics
• Developing a partnership in project mode: the rules to follow
• Integrating one’s suppliers in the international supply chain

3. Controlling one's Chinese Suppliers and Products

• Documentary credit and LCSB: how to use them properly
• Dealing with the exchange risk
• Identifying the convenient Incoterms and their cases of usage: EXW, FOB, FCA
• Merchandise transportation: delays, costs, procedures
• Identifying the documents necessary for the detax procedures