Comments on: Supplier Selection: Beyond Quality, Delivery, Cost http://theleanthinker.com/2007/10/22/supplier-selection-beyond-quality-delivery-cost/ Thoughts and insights from the shop floor. Wed, 08 Feb 2012 00:11:11 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tom Warda http://theleanthinker.com/2007/10/22/supplier-selection-beyond-quality-delivery-cost/comment-page-1/#comment-35296 Tom Warda Fri, 13 Aug 2010 10:59:54 +0000 http://theleanthinker.com/2007/10/22/supplier-selection-beyond-quality-delivery-cost/#comment-35296 Don't forget another nasty little secret about doing business in China - environmental regulations. (Or maybe lack thereof) Many companies who formerly manufactured products in the US have outsourced the work to China. Yes, cheap labor is part of the lower price, but not having to comply with strict environmental regulations also lowers one’s costs. These companies can say that their suppliers “comply with all applicable environmental regulations,” but China’s regulations aren’t nearly as strict as the rest of the industrialized world. Then there’s the problem of the regulations they do have not being enforced. China is a much larger country than the US and this affords unscrupulous individuals many more places to hide hazardous wastes and practices. China recently became the world’s largest polluter on many different organization’s rating scales. Looking down the road a bit, it’s safe to say the situation will get much worse before it gets any better. I would also offer that the US went through the exact same cycle with the “resolution” of our problem actually leading to the opportunity for the Chinese. Recall how many companies in the US are still saddled with liabilities from past environmental sins. This could be your company being held liable someday for what your Chinese supplier did (or didn’t) do. Beware. Don’t forget another nasty little secret about doing business in China – environmental regulations. (Or maybe lack thereof) Many companies who formerly manufactured products in the US have outsourced the work to China. Yes, cheap labor is part of the lower price, but not having to comply with strict environmental regulations also lowers one’s costs. These companies can say that their suppliers “comply with all applicable environmental regulations,” but China’s regulations aren’t nearly as strict as the rest of the industrialized world. Then there’s the problem of the regulations they do have not being enforced. China is a much larger country than the US and this affords unscrupulous individuals many more places to hide hazardous wastes and practices.

China recently became the world’s largest polluter on many different organization’s rating scales. Looking down the road a bit, it’s safe to say the situation will get much worse before it gets any better. I would also offer that the US went through the exact same cycle with the “resolution” of our problem actually leading to the opportunity for the Chinese. Recall how many companies in the US are still saddled with liabilities from past environmental sins. This could be your company being held liable someday for what your Chinese supplier did (or didn’t) do. Beware.

]]> By: elachezhian http://theleanthinker.com/2007/10/22/supplier-selection-beyond-quality-delivery-cost/comment-page-1/#comment-6458 elachezhian Wed, 13 Aug 2008 13:32:04 +0000 http://theleanthinker.com/2007/10/22/supplier-selection-beyond-quality-delivery-cost/#comment-6458 Please send me some questionaries on supplier selection,rating,performance for my research work Thank you, elanchezhian Please send me some questionaries on supplier selection,rating,performance for my research work

Thank you,
elanchezhian

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