NPR Morning Edition

I am often asked to comment about the price differential between the cost of materials and products in the US vs China. The “china Price” is a hot topic of conversation. But when NPR called me, I was truly thrilled to give an interview. I have been member of NPR for years. I respect NPR’s approach to programming and enjoy the feature clips. What a great opportunity! The link to the audio story is here http://www.npr.org/player/v2/mediaPlayer.html?action=1&t=1&islist=false&id=130258250&m=130260491
NPR reporter, Adam Davidson called me early on Thursday morning and asked me several questions about the cost differential on Chinese-made products if the RMB was allowed to freely float against the dollar. One of the examples I used was of the industrial springs I helped a client source in Shenzhen. That was the anecdote he chose for the story.
Since my book, 42 Rules for Sourcing and Manufacturing in China, was published, it has done very well on www.amazon.com . My publisher also sent out a press release to TV and radio stations and over time, I have been interviewed on several radio stations. I was also interviewed for CCTV (China’s CNN). But NPR was the best of all. My 15 seconds of fame!

Cost Cutting with Vendors

Lately I have been reading a lot of stories in the press about how to squeeze every last drop of blood out of every supplier because, we are after all, in a recession. During these economic times, companies are asking suppliers to take price cuts with no concessions just because they need to cut costs.
This is an unproductive approach. I understand the need to cut costs, but this must be done in the spirit of a trade. To preserve the long-term relationship with your supplier, you must focus on keeping the economic balance between both parties. This can be done through trading for something of value.
If you want your current suppliers to cut costs, then offer a free-to-you concession such as endorsing them to your colleagues in other divisions or other companies. Or how about sponsoring them for a speaker’s slot at the next NAPM Round Table? These things are free to you, but can be quite valuable to your vendor.
Focus on trading for something that’s valuable to your vendor and that will ease the pain of a price concession. Let’s help each other through these tough times.