As a European company in the automotive or machinery industry, there are many elements to keep in mind when you are sourcing in China: price, quality, the delivery time of the products etc. After the project is launched, there is also a series of contract documents that need to be signed with the supplier. The contract documents are the most critical part of the entire project. Once the contract is in effect, it is legally valid and binding, so the purchasing contract should be carefully reviewed before it is signed. In this article, we will share with you some considerations when signing contracts with a supplier in China.

Suppliers are the source of products in the procurement of goods for foreign enterprises in China. The quality, stability, delivery, scheduling, coordination, and product investment are all closely related to the suppliers. Thus, managing and maintaining good relationships with suppliers is particularly important.

When procuring goods, it is of utmost importance that the delivered products meet the required quality standards demanded by the customer. Effective supplier quality control is of great significance in minimizing the risk of receiving defective deliveries.

Liquidity planning is a crucial aspect of financial management that involves assessing and managing an organisation’s ability to meet short-term financial obligations. Effective liquidity planning ensures that an organisation can manage its ongoing operational expenses, debts and unforeseen financial challenges. This guide will look at the intricacies of effective liquidity planning, exploring the key components and providing a comprehensive overview of the process to meet short-term financial challenges with confidence and foresight.