My simplistic answer would be “why not?” As buyers of products or services, we are obligated to consider all options to gain the most value for our particular organization. Considering a supplier in China is no different than considering a supplier across the United States, though there are delivery elements to consider from a cost and time impact as well as supply chain issues. Specific due diligence regarding the supplier should be weighed regardless of the location of the supplier. However, the key to doing this successfully with suppliers who are half way around the globe requires a presence in that country.
“You’re not from around here, are you stranger?”
It wasn’t that many years ago when our comfort zone for supplies seldom went outside half a day’s wagon ride. Remember, we are all competing with others who will take advantage of every opportunity – even if we don’t do so – in order to survive. Therefore, we had better look seriously at low cost country sourcing. It no longer is sufficient to prepare a strategy and metrics to justify not doing it. That’s a very short term solution which most likely is not in the best interest of your organization.
Change or Die
I once had a manager who explained rather ruthlessly that “either you’re going to do it or I’m going to get someone who will” which could have been put in a more diplomatic way but applies here as well. That said - after you apply buying metrics to a RFP and look at all the proposals - some materials, products or services should come from certain suppliers regardless of their location but based on their capabilities and total delivered price. Most items can and must be able to have longer lead times in order to stay competitive. It requires implementing good forecasting methodologies which top companies have – and those that don’t, need. Explore all options and every opportunity. In today’s economy, none of us can afford not to.