Bulldozing your way through a claims issue will get you nowhere with your China supplier. Investing the time and effort on discussions is essential to continued business, and terminating your contract should only be a last resort. All serious exporters are open to reason, so organize your evidence and make your point logically.

By Klaus-Dieter Hanke Image

Presenting the Facts
After the customary small talk with factory management, it’s time to discuss hard business. Be sure to present all necessary evidence, such as documents, statements, invoices and samples. Present everything you need to convince the decision maker of his responsibility and hopefully he will accept your point.

Samples of a defective product are especially important at proving your case since everybody can directly see the problem in plain sight.

A nicely prepared folder or binder containing all necessary documents and photos can help you in your presentation. Make several copies for the other managers as well. It would be better if you have Chinese translations prepared for the non-English speaking members of their management team.

The Claim’s Effects on Your Company
Clearly point out to your supplier the consequences the claim has already had on your company (e.g. loss of turnover, loss of customer confidence, loss of reputation as a quality importer). Then explain future consequences this claim will have if it is not resolved soon. Never assume the supplier knows these things. He may not understand much about how business is conducted in your home country.



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