Trading companies, sourcing companies and overseas customers have been receiving price increase notifications from their Chinese suppliers a lot more frequently than they ever did.
The reason behind these frequent increases stemmed from a few factors, including the inflation of the Chinese currency, the increase of cost of living in China, cost increase of materials resulting from the so called supply side reform policies and the crack down of polluting industries.
The global economy is recovering whereas the cost in China is increasing. This is both an opportunity and a challenge for export enterprises in China.
For businesses who source products from China, they must react to these circumstances with diligence in price comparison and updating their supply list to stay competitive. They must make sure that suppliers who fail to control their cost or stay efficient are eliminated from their sources and suppliers who excel in being on top of their bottom line are added.
Learn more about Sourcing Spectrum’s supply chain and sourcing consultancy: www.sourcingspectrum.comShare