Taking charge

Some international companies take matters into their own hands and build complete planning systems for their suppliers. A director for one such company, who did not want his name used, says that getting a straight answer can be very difficult, and people in China are sometimes reluctant to take responsibility. "We've been burned way too often," he says.

Good technology can be very helpful, he says, but an ERP system doesn't solve cultural problems all by itself. "There are plenty of people with ERP systems having a tough time," he says. "If you put in a system, how do you know the data is correct? People are very good at pretending to do what they're told."

Process is even more critical than technology, according to the director. "The system is secondary. We spend 90 percent of our time on processes rather than systems installation," he says. "We spent two and a half years on change management before we spent one cent on putting in a planning system."

Since his suppliers had no IT systems at all, his company was able to write a system for the suppliers and host it for them. "It's something we can do cheaply here," he says.