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Supplier Relations: Helping Open Windows on the East

Yentian-10r photo  

Rarely a day goes by without some reminder, in the business press or elsewhere, of the phenomenal growth in China’s importance within the 21st century economy.

While this is a global phenomenon, some regions are particularly well-positioned to benefit from it. Northwest British Columbia – located as it is along an important transportation corridor between North America and Asia – is one of them.

In 2007, Rio Tinto Alcan Primary Metal BC’s procurement and regional industrial development groups teamed up to lead a trade mission to China for select suppliers from northwest British Columbia. By enabling them to explore Chinese procurement and sales opportunities, Rio Tinto Alcan Primary Metal BC strengthened its local supplier pool and supported regional economic development.

In addition to seven suppliers selected by Rio Tinto Alcan Primary Metal BC, representatives of the provincial government and Kitamaat Port Development Society took part at their own expense. The 10-day mission included a major manufacturing trade fair in Guangzhou, and targeted one-on-one meetings with Chinese suppliers and manufacturers.

Purchasing manager Craig Minke of Western Equipment Limited, a British Columbia-based industrial distributor with a branch in Terrace, was among the suppliers selected to take part. He notes that offshore supply has become increasingly important in recent years, but that quality-assurance can be a challenge.

The contacts that the trade mission allowed him to make have helped overcome that hurdle, he says, and Western Equipment has since imported various Chinese products as a basis for customer feedback.

Minke notes that the opportunity to participate in the mission was especially valuable to a relatively small family enterprise, and he expects that it will improve Western Equipment’s ability to service its long-standing relationship with Rio Tinto Alcan Primary Metal BC.

Commercial outcomes were being explored and implemented by other participants when this report was prepared. The initiative was particularly well-timed relative to the Kitimat Modernization Project, which is expected to result in significantly expanded opportunities for northern British Columbia suppliers.       

Sustainable Development Dimensions
Economic Environmental Social
  • stronger capacities on the part of local suppliers are likely to result in cost and service benefits for Rio Tinto Alcan Primary Metal BC over time
  • direct in-market contacts are a basis for greater confidence in supply-chain relationships, potentially including environmental criteria
  • outcomes likely to include new opportunities extending beyond supplying Rio Tinto Alcan Primary Metal BC, potentially with regional economic diversification benefits