Procurement teams have been caught out by suppliers in China, who in some cases have been delivering poorer quality goods over time, according to research by analysts Gartner.
The study of global firms concluded that while sourcing from China can increase profit margins, purchasers must be vigilant against vendors using fake certificates, price increases, reducing production quality over time and ignoring delivery times and patents.
The report recommended “vigilance” at supplier sites to prevent fading quality, and using third party inspectors if company officials aren’t present. Sometimes Chinese suppliers bought fake certificates attesting to ISO quality standards, Six Sigma and social compliance, which prove hard to detect.
