3 communication pitfalls in selecting LCC suppliers

Effective communication with your supplier is the most important factor in selecting a supplier after landed costs. Unfortunately, North Americans assume that working with LCC companies is the same as dealing with North American suppliers – and it’s definitely not!

Time Zones –

LCC’s typically will be in time zones 9-14 hours different from North American time. Because of this difference, virtually all communications will be via email. The LCC company will likely have a dedicated person to handle all English communication and it is also likely this person will have little to no technical knowledge or skill. This will require the dedicated English speaker will need to convene with the LCC company personnel which has the requisite technical knowledge to provide answers to your questions or concerns. Scheduling a conference or Skype call during your business hours may therefore be pointless if the technical people are not present in the call. If you are able to schedule a call which includes the technical people, the time required to complete the call can take 2 to 4 times longer than you would normally expect due to translation time and English speaker education time. The common communication cycle is that you ask questions during your business day via email and receive answers the next business day. This cycle can cause the time to resolve issues to be unusually long when compared to typical North American expectations.

Translating technical language –

Frequently, the designated English speaker doesn’t know or understand technical English, or the technical subject in anyway and therefore cannot translate your questions. While your contact can speak and write conversational English, it is of little use in technical discussions. With my extensive travels in LCC countries, I have developed a communications skill where I ask questions via drawing on a white board to get answers directly from the engineers involved. This way, I can typically get an answer from the engineer faster than the translator can even understand my question.

Employee Turnover –

Recent statistics in China show general turnover rates ranging from 15-25% annually. I suspect English speaking turnover is even higher due to high demand. As a customer you may not even know a personnel change has occurred. I have seen instances where the new English speaker takes on the old English speakers email address or English name. You may only notice the change after being confused when they don’t remember a prior conversation or email. The best way to avoid this issue is to look for companies that have employed their English speaker for more than 5 years or one that has been in the industry for more than 10 years.

Turn over rate sources:

http://usa.chinadaily.com.cn/epaper/2015-12/21/content_22763852.htm

http://www.eusmecentre.org.cn/  You will have to download PDF called “HR Challenges in China”

http://www.recruitmentadvertising.cn/news/150.html