Foreign companies with the greatest success at sourcing or buying in China share some common best practices:
Defining a clear sourcing strategy with specific targets and plans;
Integrating China suppliers and research and development (R&D) into design, leveraging Chinese suppliers' capabilities by integrating the suppliers and China technology centers into product design;
Gaining 100 percent transparency into sourcing volumes and savings, developing country-specific scorecards and data collection systems that provide clear transparency; and Addressing real and perceived risks, including exchange rate fluctuations, changes in costs of labor and materials, power outages, quality problems and transportation delays.
(C) 2009 JyS China Business Service Co. Ltd. Relates
