Global Sourcing Procurement In China

Bachelor Thesis from the year 2005 in the subject Business economics - Supply, Production, Logistics, grade: 1,7, Kiel University of Applied Sciences, 89 entries in the bibliography, language: English, abstract: The matter of China Sourcing is at present being given little or medium-level priority by many companies. This however is not consistent with the potential which this matter offers with reference to procurement costs and consequently one's own competitive position. In the near future China will advance to become the procurement market par excellence. Today, it already has a large supply base, which in the next few years will lead to China developing into one of the most aggressive competitors in the world. This will lead to an increase in procurement from China. However, it is misplaced to rush into the "adventure" of procurement in China. Thorough preparation is necessary to be successful in the Chinese market. Procurement in China does not only offer opportunities but it is afflicted by risks and problems. The focus of this book is directed towards 5 important problem areas: a lack of market transparency, difficulty in establishing contacts, underdeveloped logistics infrastructure, a lack of product quality, unusual negotiating strategies. The reader is made sensitive to these problem areas. At the same time, it provides practical advice to overcome these problems and gives purchasers useful information and hints in practical business situations. This guide is aimed at purchasing managers in production companies who have not yet had experience of dealing with or in China and who would like to start.

The political and economic opening up of India, China, Turkey and the eastern European states have led to a change in competition on the world's markets. These countries are already considered attractive procurement markets, especially by European companies. However, global sourcing can mean hidden costs for those who are unaware of the international markets and their modes of operation. In this book, Gerd Kerkhoff proves that companies can still be successful in their global sourcing - despite the risks involved. He shows which goods and services are suited to global sourcing and introduces the key procurement markets and their strengths. Concrete examples illustrate how international buying can be successfully planned.

This book provides readers a holistic and pragmatic approach towards supply management in China. It elaborates on how supply management should integrate the optimum level, and a combination of quality, cost and delivery. In addition to serving as a guide on how to address cultural barriers, apply supply tools and concepts, it also illustrates the best practices in supply management in China. It draws from a large number of best practices of companies from automotive to railway, to convince other functional departments and higher management that supply management plays the most fundamental role in any organization due to the high number of value adding activities which are coming from suppliers. These practices have been derived by a multi-methodical approach including interviews with supply management leaders from industry and experts in academia, making it as unique and a suitable a guide for practitioners and academics.

This book highlights the inducements, advantages and obstacles faced by enterprises in the development of a sourcing channel in China. A taxonomy of the sourcing typologies is proposed and a normative model is described choice. The book examines the paths leading to an effective sourcing channel and International Purchasing Office in China.

Studienarbeit aus dem Jahr 2013 im Fachbereich BWL - Unternehmensführung, Management, Organisation, , Sprache: Deutsch, Abstract: Ever since the introduction E-Business solutions in the late 1990 ́s markets have been evolving to more transparency and immediacy. Having the capability of comparing prices and lead times the global key costumer base also has become more demanding in terms of price, quality and availability. These changes have been increasing market pressure especially within the trading industry which often adds no or little value to the original product. The tool, machine, working equipment and service provider, the XYGroup, with its headquarters in Germany offers almost seventy thousand articles; from simple steel grinding tools to high-complexity industry working equipment solutions. The products are mostly delivered from the German headquarters to the subsidiaries. The company has been operating since 1910. In 2012 Z ́s sales aomunted roughly to 100 million €. One of the 15 subsidiaries within XYis XY CHINA is situated in the directly governed municipality CHINA. The subsidiary was founded in 2002. In 2012 it accounted for 4% of total XYsales. The location (City in China) was chosen because it provides a mature infrastructure including a harbor and a convenient highway connection to Beijing. In 2012 CHINA has reported Gross Domestic Product per capita of 91,180.6 RMB which was the highest GDP per capita of all Chinese cities. Furthermore CHINA ́s real GDP had the highest growth rate of all Chinese cities, 13,8% in 2012. Key accounts are leading automotive as well as aircraft manufacturers. Due to the financial crash in 2008 and its aftermath sales declines in consumer as well as professional markets. Competition within the tool and machine industry has ever since become fierce and the subsidiary struggles with different internal as well as external factors. One of the indicators for the accentuation of competition within the Chinese market is the subsidiary ́s increasingly growing “Outsource Procurement Quota“. This quota states the amount of goods not being ordered from the headquarters in Germany but locally in China or in other countries from external suppliers. What might be the reason the purchasing managers currently source an increasing number of goods locally or in other countries instead of sourcing from their mother company that states to provide reliable conditions and quality?

Diploma Thesis from the year 2007 in the subject Engineering - Industrial Engineering and Management, grade: 1,0, University Karlsruhe (TH) (Institut für Produktionstechnik - wbk), language: English, abstract: Sourcing relatively simple standardized commodity-like items from Chinese suppliers already poses considerable sourcing challenges. But methodologies and best-practice guidelines exist to identify Chinese suppliers, to develop them, and to establish a global supply chain. However, the case of sourcing unique components from Chinese suppliers is not widely published in the academic literature. Unique components are complex from an engineering point of view, and they are ordered in low volume. Based on a multiple-case study in the electromechanical engineering industry, the result of this thesis is a best-practice guideline for sourcing unique components from Chinese suppliers. The guideline addresses the involvement of different functions including quality assurance with the Chinese supplier, and it shows the different approaches the case companies take for selecting the suppliers. Also, the companies’ production management is addressed. The conclusion is that there are two promising approaches depending on the customer’s re-quirements. One approach is to outsource engineering and manufacturing as far as possible, the other is to engage in a close buyer-supplier-relationship.

The latest best practice guidance on all aspects of global strategic sourcing-including environmental and international issues Strategic Global Sourcing Best Practices covers the latest trends and leading edge processes in global strategic sourcing, including supply management, t, sustainability, financial decisions, risk management, and international strategies. Offers the latest trends and guidance for sourcing and supply managers Features coverage of understanding sourcing, procurement and supply management, procurement and best business practices, best practices in sourcing management and global sourcing management, financial strategies for sourcing, responsible procurement,diversity procurement, managing risk, supplier selection, project management for procurement and supply managers, managing supplier relationships, international sourcing, managing supplier relationships supply management operations, With the rise of global supply chains, environmental/sustainability concerns, and constantly evolving technology, the time is right for understanding Strategic Global Sourcing Best Practices.

Doing business in China is tougher than you think. Not only is the culture vastly different, but China's experience in manufacturing is still developing. It will be a few years before the majority of manufacturers are up to world standards. In the meantime, quality, contract laws, schedules and logistics must be closely monitored. As a result, the things Westerners must do to be successful are far different from dealing with American or European manufacturers. The best way to quickly come up to speed on these differences and how to handle them is to learn from the experience of others. Through over 20 extraordinary executive interviews, Rosemary Coates captured the essence of sourcing and manufacturing in China. '42 Rules for Sourcing and Manufacturing in China (2nd Edition)' is a pragmatic approach that every businessperson headed to China must read. For business people who are experienced in doing business in China, or for first-time visitors, this book will provide valuable insights from real executives and experts. These executives offer their personal experiences and recommendations about sourcing and manufacturing in China. Going beyond simple cultural do's and don'ts, you will discover: how business is really done how you can make things happen in China the mistake westerners often make, and how to avoid them what made these executives successful Based on her 25 years of supply chain experience, much of it spent living and working across Asia, Rosemary Coates has become an expert on doing business in China. Her own personal experiences in China are interwoven into this book.