How To Manage The Supply Chain Risk In China Manufacturing?

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If you’re in the business of manufacturing goods in China, you know that managing the supply chain can be a daunting task.

According to a survey, “93% of Chinese companies are planning to upgrade their supply chain processes to tackle the effect of trade tariffs. Out of which 18% are planning to transform their production and supply chain process entirely, 58% are making some major changes while the remaining 17% companies are incorporating minor changes.”

There is no doubt that after COVID-19, the primary concern for businesses lies in the risk of supply chain disruption.

But don’t worry – we’re here to help!

In this blog post, we’ll explore the different types of supply chain risks associated with Chinese manufacturing and show you how to avoid them.

Regarding supply chain risk management (SCRM), we have extracted the definition explanation from NIST

A systematic process for managing supply chain risk by identifying susceptibilities, vulnerabilities, and threats throughout the supply chain and developing mitigation strategies to combat those threats whether presented by the supplier, the supplies product and its subcomponents, or the supply chain (e.g., initial production, packaging, handling, storage, transport, mission operation, and disposal).

4 Major Supply Chain Risks In China Manufacturing

It’s important to be aware of the potential issues before taking the plunge and entering into an agreement with any supplier or factory – especially while manufacturing in China!

So, let’s look at the four major supply chain risks associated with Chinese manufacturing, along with their respective solutions.

1. Natural Disasters

Ah, natural disasters – the wild card of the supply chain world.

From earthquakes to typhoons and everything in between, it’s like Mother Nature decided to have a party in China, and everyone’s invited.

These events can cause major disruptions in the supply chain, and we’re not just talking about a delay in getting your morning coffee.

According to a report published by the Chinese Ministry of Emergency Management, “Natural disasters result in $13.13 billion in losses for the Chinese economy in the first half of 2022.”

The Solution:

You might be thinking, “Well, how can I possibly prepare against something as unpredictable as a natural disaster?”

The answer is simple – diversify!

Try to have multiple suppliers in different locations so that if one area is affected by a natural disaster, the other will be unaffected and can come to the rescue.

However, Finding a supplier with similar quality and budgeting by yourself is no less than an arduous task.

2. Political Risks

Some business owners/managers might think that political risks only include trade tariffs and sanctions.

But there can be other political risks like changing local regulations, banning certain materials/goods, or changing the tax structure.

All of these can affect the import and export process – leading to delays and disruptions!

The Solution :

Partner with a reliable local sourcing agency. They will not only help you find the right supplier, but they can also monitor the political situation and plan accordingly.

3. Quality and Compliance Risks

Quality and Compliance – the two best friends of the supply chain world.

Who doesn’t love a good quality control check and staying on top of regulations and standards? But being real – it can be a bit of a headache to navigate all the different requirements. And with the constant changes in regulations, it’s easy to fall behind.

The Solution:

It’s important to stay up-to-date with the regulations and standards in both countries.

You can either do the research yourself or partner with an experienced Chinese export agent who has local people and expertise in the region and could do an on-spot check for you.

4. Logistics Risks

Logistics – the backbone of the Chinese supply chain.

With goods and products constantly moving, it’s important to make sure everything is running smoothly.

But with so many moving parts, it’s easy for things to go wrong – delays, lost shipments, and unexpected events!

And you know where they made a mistake?

Entirely relying on a Chinese manufacturer or partnering with a scammer/fake manufacturer.

The Solution:

Here are a few tips to make sure you avoid logistics-related risks and delays:

Plan ahead – Anticipate potential issues and have contingency plans in place.

Use technology – Utilize real-time tracking and predictive analytics to stay on top of shipments and potential issues.

Partner with a reliable import agent – The right agent will be able to support you with customs clearance, documents, and other logistics-related tasks. Import agents of fitness equipment in China like Fitscode offer a broad range of services from manufacturer onboarding to product development and quality control to logistics handling. You will find everything under one roof.

Who Are We?

Fitscode fitness company(locally called Xiamen Dianshi Trade Company) was established in 2002 in Xiamen, China. Since 2009, Xiamen has become China’s largest sports equipment manufacturing and export base. After these years, Fitscode fitness company has built long-term cooperation with many factories and achieved a good reputation in the fitness equipment industry also served many large enterprises in Walmart/Sears/Aacadmy/BIG 5/Sports Authority/Amazon and accumulated a lot of industry experience, product experience and experience in dealing with emergencies. So when the order is delivered to us, we will work more efficiently, improve efficiency and shorten the delivery time. In addition, we will regularly push new products, and we are willing to work with customers to develop unique products with competitive advantages.

We look forward to having you as our future partner as well.

Fitscode Fitness Company

Fitscode Fitness Company

Fitscode Fitness Company(locally called Xiamen dianshi trade company) has serviced for wholesale sports and fitness products industry for 15 years and is familiar with the products, suppliers, and import and export policies. We can help customers to find the products they need, communicate with mainland suppliers, follow orders, inspect, export, and other one-stop services.

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