Trade between the United States and China is worth around $690 billion every year.
The United States is the largest economy in the world and does a majority of its business with China. These two countries depend on each other for a wide range of products and services. As a manufacturing hub for the world, sourcing products from China has become a very lucrative industry.
This is why China is such a key part of forming a solid supply chain strategy. Once you have a good relationship with your suppliers in China, your entire supply chain can benefit. This ensures that your business can continue to thrive and grow.
Want to learn more about creating a sustainable supply chain strategy? Read this helpful guide for more information.
What Is the Supply Chain?
A supply chain is a complex logistical system. This is the term that’s given to the logistical process that underpins your business. In simple terms, this is the process of sourcing and transporting everything your business needs to run efficiently.
If you have a business that sells soap. You may be buying that soap from a supplier in another country. In this example, your supply chain would include the soap manufacturer, the packaging company that boxes the soap, and the transportation company that brings it to your business.
This logistical path is known as the supply chain. It’s referred to as a chain since each part is linked together. In this way, the entire logistical chain is dependent on each other to survive and thrive.
The Importance of a Strong Supply Chain
As mentioned above, the supply chain is best described as a logistical path that goods need to take to make their way to your business. This supply chain can vary depending on the nature of your business. Above, we used an example of a soap company that resells soap.
However, the logistical system can be more complicated if you are the company making the soap. This is because a soap reseller can just buy soap from another company if their supplier closes down. However, soap manufacturers need more suppliers to run every day.
A soap manufacturer will have dozens of suppliers that supply individual chemicals and ingredients. If one supplier closes down, the entire operation stops until that supplier can be replaced. This emphasizes why it’s so important to have a trustworthy, reliable, sustainable supply chain.
Since the chain is interlinked, one delay can cause a delay to the entire supply chain. An hour-long delay in one part of the world can have a real-world effect across the globe.
If you want your business to grow and thrive without interruption, you’re going to need to create a solid supply chain. This will ensure that your business always has the supplies that it needs.
Scalability
It’s also important to make sure that your supply chain is scalable. If your supply chain can not handle larger quantities, then you will outgrow them. In this way, your business will have a ceiling that you can’t exceed.
When you exceed this limit, your suppliers won’t be able to keep up and you won’t be able to meet customer demands. This will then stunt your growth and cause you to shrink back down to size.
This is why it’s so important to find the right partners to work with. When you find suppliers, make sure that they can help you today and in the future.
Components of a Supply Chain
There are a few components that are included in a healthy supply chain. These components were illuded to before. Here’s a more in-depth breakdown of the roles that they play.
Suppliers
The suppliers are essential to the supply chain. These suppliers are often referred to as the start of the supply chain. When sourcing suppliers, it’s important to make sure that they are reliable, trustworthy, and scalable.
This way, they can grow along with you.
Shipping Partner
Another component of the supply chain is a shipping partner. This is the bridge that connects you to the supplier. The shipping partner will work hard to collect your good from the supplier and get them to your door.
Supply Chain Manager
A supply chain manager is in charge of overseeing the entire supply chain process. This manager is experienced in supply chain management and will quickly solve issues when they arise. This is done to ensure that there’s no delay in production or delivery.
Outsourcing Supply Chain Management
As you can see, creating and managing a supply chain for your business is incredibly complex. However, outsourcing your supply chain management is a great solution. This is because you can take all the stress off your shoulders while ensuring that your goods always arrive on time.
Benefits of Outsourcing Your Supply Chain
There are a few notable benefits of outsourcing your supply chain. One of the key benefits is that you can outsource your supply chain to a Chinese company. This way, they will have the knowledge and expertise to get you the best deals in China.
Additionally, this will take all the stress off your shoulders and free up your time. This allows you to focus on your business while the supply chain gets optimized for you in the background.
Chinese Supply Chain Management
When it comes to launching your business, it’s important to have a solid supply chain strategy. This will ensure that your business can serve customers consistently. In this way, you can quickly grow and scale your business in no time.
Finding the right partner is essential. This is because the right partner will empower you to expand and grow like never before.
If you’re looking for a partner to streamline your supply chain, you’re in the right place. China 2 West can help you out with any of your supply chain needs. Send us a message today!
