Supply chain video: Interview with Haldex VP of Logistics (B)
Filed in archive Supply chain video on September 29, 2008
Many western companies, when coming to China, expect a lot of saving in the sourcing area but reality is something else as Theo Lindqvist, VP of logistics in Haldex says.
In this second part of the interview with Mr. Lindqvist, here talks more about the hidden costs of sourcing in China (such as travel costs, the cost of the components being in the ship, etc.) and also mentions some other challenges such as quality. I had the impression from the second part that he is rather disappointed about the quality issue in China and thinks for many of the Haldex customers such as passenger car industry, the Chinese suppliers are not the best option.
Tags: haldex supply chain management video scm vp sourcing china asia 2007 supply+chain
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Response from:
Owais Raja
(02/24/09 9:58am)
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I better prefer single sourcing and with good quality and peace of mind and will definatley develop the partnership with supplier rather treating them as only short term business.
Regarding China the "GUANXI" concept is more important in doing business and this affects the business.
I totally agree with VP that hidden cost of logistics are much more according to one survey its 10% more expensive to order product from china rather from india but the problem of Indian reliability and ontime delivery and their bad reputaion keeps the custumer away from sourcing from INDIA.