China China valve procurement risk identification and prevention

With the continuous development of China’s economy, the growing demand in the industrial field, valves as an important equipment in industrial production, its quality and performance directly affect the stability and safety of industrial production. Therefore, the procurement risk of valves has received more and more attention from the industry. This paper discusses the identification and prevention of China China valve procurement risk in order to provide reference for valve purchasers.

First, the identification of China China valve procurement risk

1. Quality risk

The quality of the valve is directly related to the stability and safety of industrial production. In the China China valve procurement process, quality risks mainly include the following aspects:

(1) The valve design is unreasonable, resulting in the use of the process can not meet the needs of the project;

(2) The valve material is not qualified, which causes cracks, deformation and other problems in the use of the valve;

(3) The valve manufacturing process is backward, making the valve in the use of poor sealing performance, operational performance decline and other problems;

(4) The valve inspection and testing is not strict, resulting in the flow of valves with safety hazards into the market.

2. Price risk

Valve prices are affected by a variety of factors, such as market supply and demand, raw material prices, production costs and so on. In the China China valve procurement process, the price risk mainly includes the following aspects:

(1) Market price fluctuations, resulting in unstable procurement costs;

(2) The supplier’s quotation is not transparent, making it difficult for the purchaser to judge the rationality of the price;

(3) The purchase quantity is small, resulting in the purchaser in a disadvantageous position in the price negotiation.

3. Delivery risk

The delivery time of the valve has an important impact on industrial production. In the China China valve procurement process, the delivery risk mainly includes the following aspects:

(1) The supplier’s production capacity is insufficient, resulting in delayed delivery of valves;

(2) Logistics transportation problems, resulting in valve damage or loss during transportation;

(3) International trade friction, resulting in restrictions on valve imports.

4. Legal risks

There are many laws and regulations involved in the China China valve procurement process, such as contract law, product quality law and so on. In the China China valve procurement process, the legal risk mainly includes the following aspects:

(1) The contract terms are not clear, resulting in damage to the rights and interests of the purchaser;

(2) The supplier does not have the relevant qualifications, resulting in the purchaser to bear legal responsibility;

(3) Intellectual property disputes, resulting in the purchaser facing litigation risk.

Second, China China valve procurement risk prevention

1. Strengthen supplier qualification review

In the China China valve procurement process, the purchaser should strictly review the qualification of the supplier, including production license, quality management system certification, patent certificate, etc. In addition, the purchaser can further understand the production capacity and quality assurance level of the supplier through site inspection, performance query and other ways.

2. Improve the contract terms

In the China China valve procurement process, the purchaser should sign a detailed contract with the supplier to clarify the rights and responsibilities of the two sides, delivery time, quality assurance and other aspects of the content. At the same time, the purchaser shall also stipulate the liability for breach of contract in the contract to bind the supplier to perform the contractual obligations.

3. Improve your own risk awareness

In the China China valve procurement process, the purchaser should have a high risk awareness, timely attention to market dynamics, policies and regulations and other aspects of information, in order to effectively identify and prevent procurement risks. In addition, the purchaser should also establish and improve the internal risk prevention and control system to improve the risk response ability.

4. Focus on brand selection

In the China China valve procurement process, buyers should pay attention to brand selection, try to choose well-known brands, suppliers with good reputation for cooperation. Well-known brand valves often have high quality assurance and perfect after-sales service system, which can reduce the procurement risk.

In short, the identification and prevention of China China valve procurement risk is a problem that cannot be ignored in industrial production. Buyers should start from many aspects, strengthen risk awareness, improve risk response ability, to ensure the smooth progress of the China China valve procurement process.