Global Sourcing Strategies: Challenges and Opportunities in Trade with China
Posted: Sun Jan 19, 2025 9:29 am
China is the world’s largest exporter. In a list shared by Fazcomex, China appears in first place, followed by the United States and Germany. At the exclusive event “Connections Beyond Borders: Navigating Brazil-China Retail”, held at Saint Paul Business School, Paola Sinato, Senior Commercial Director of the Carrefour Group, shared her experiences in her eighteen visits to the country, negotiating with and buying from Chinese companies. The event was also attended by Mila Securato, Ph.D, Partner and Chief Revenue Officer of Saint Paul, and featured questions and insights from many participants.
Career Beginnings and Transitions
The event began with a presentation by Paola, who was invited to share her professional background and extensive experience working with suppliers in China, India, Europe and the United States. In 2003, Paola bolivia whatsapp data joined Walmart in the Marketing area. After four years, she transitioned to the Non-Food Sales area. At that time, 70% of the non-food products sold by Walmart were of domestic origin. However, in just two years, this percentage had reversed: 70% of the products were now imported, mainly from China, due to lower costs.
The Sourcing Process in China
Paola explained in detail the process of sourcing and negotiating with suppliers in China. The first step is to attend trade shows in Europe and the United States to identify trends and new products. The information gathered is then sent to the Global Sourcing team in China, which then contacts local suppliers. After an initial audit, Paola and her team visit suppliers in China to evaluate samples and negotiate costs. She emphasized that the Chinese are excellent negotiators: “China is a negotiator by nature.” The Chinese are always willing to do business and adapt products and prices as needed.
Audits and Sustainability
Paola highlighted the importance of supplier audits to ensure ethical and sustainable practices. These audits cover the supply chain, production capacity, facilities and working conditions, and are often carried out without prior notice. The audits are conducted by third-party companies and involve international teams to avoid conflicts of interest. Paola emphasized the responsibility of companies to develop an ethical and sustainable economy, ensuring that imported products are not associated with abusive or illegal labor practices.
Career Beginnings and Transitions
The event began with a presentation by Paola, who was invited to share her professional background and extensive experience working with suppliers in China, India, Europe and the United States. In 2003, Paola bolivia whatsapp data joined Walmart in the Marketing area. After four years, she transitioned to the Non-Food Sales area. At that time, 70% of the non-food products sold by Walmart were of domestic origin. However, in just two years, this percentage had reversed: 70% of the products were now imported, mainly from China, due to lower costs.
The Sourcing Process in China
Paola explained in detail the process of sourcing and negotiating with suppliers in China. The first step is to attend trade shows in Europe and the United States to identify trends and new products. The information gathered is then sent to the Global Sourcing team in China, which then contacts local suppliers. After an initial audit, Paola and her team visit suppliers in China to evaluate samples and negotiate costs. She emphasized that the Chinese are excellent negotiators: “China is a negotiator by nature.” The Chinese are always willing to do business and adapt products and prices as needed.
Audits and Sustainability
Paola highlighted the importance of supplier audits to ensure ethical and sustainable practices. These audits cover the supply chain, production capacity, facilities and working conditions, and are often carried out without prior notice. The audits are conducted by third-party companies and involve international teams to avoid conflicts of interest. Paola emphasized the responsibility of companies to develop an ethical and sustainable economy, ensuring that imported products are not associated with abusive or illegal labor practices.