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Sourcing successfully from China
A new report from the Boston Consulting Group, Sourcing from China: Lessons from the Leaders, aims to define what makes a successful China sourcing strategy. It found that the 15 companies studied averaged 20% savings of landed costs with some reporting savings as high as 60%.
11/20/2007


According to the report, companies typically go through four stages in China sourcing: testing the waters, early engagement, full integration and finally making China a center. But the expansion and success of sourcing in China is hindered by a lack of understanding, lack of incentives and perception of risk. The report outlines 10 best practices for sourcing in China.

  • Define a clear global sourcing strategy with specific targets and plans
  • Align the China sourcing organization with global procurement
  • Enable collaboration across regional and functional boundaries
  • Integrate Chinese suppliers and R&D into design
  • Systematically develop qualified suppliers
  • Recruit, develop and retain the best people
  • Gain 100% transparency into sourcing volumes and savings
  • Provide internal education to increase awareness and understanding
  • Tie incentives to sourcing targets
  • Address real and perceived risks of sourcing in China
Alannah Eames
Buying as you sell
8/18/2010

At Prysmian, a world leader in the manufacture of high-tech cables for the energy and telecommunications industry, procurement is not for the faint-hearted. The raw materials that go into the manufacture of a high-voltage power transmission cable are subject to constant price fluctuations. From their Milan headquarters, purchasers must learn to live with volatility.

Performing under Pressure
6/23/2010

Relentless cost pressure is challenging the procurement function as never before. For Dr. Volker Pyrtek, CPO of telecoms giant Deutsche Telekom, the new status and scope of the profession has resulted in a place on the company’s executive operating board. But don’t expect procurement’s potential to be taken on faith, he warns, a reputation has to be earned.

Doing the deal in China
1/27/2010

Personal contacts and saving face are key to sealing the deal in China. Where Westerners tend to look for clear alternatives (option A instead of option B), the Chinese may examine ways to combine both options, writes Christopher Crosby in CNN Traveller.

Earlier
1/27/2010 Better plans for a (better) future
12/9/2009 Facilitating e-procurement
9/23/2009 The Lure of Purchasing
9/21/2009 Lessons from the downturn
7/23/2009 A new destination for procurement
6/23/2009 The supply chain elite gathers in Germany
4/6/2009 In-house or as a Service? – Challenging the role of the CIO
12/8/2008 Front line purchasing
12/5/2008 India for beginners
12/4/2008 Enabling technology - the right way
12/4/2008 Beware of the sales guy
5/26/2008 The mirror image of sales
5/26/2008 Dutch, Japanese or Yankee?
5/13/2008 Winning the Chinese over
5/13/2008 Purchasing salaries continue to climb
5/13/2008 Knowledge Process Outsourcing: Coming soon to an office close to you
4/21/2008 New book on procurement transformation
4/21/2008 Enterprises exposed to supply risk
4/21/2008 Asian salaries rising sharply
1/15/2008 CPOs lack resources to tackle change
1/15/2008 Complex supply chains at risk
12/20/2007 Asian economies smaller than previously estimated
12/11/2007 Beware new global challengers
12/5/2007 European benchmark on responsible sourcing
11/21/2007 European enterprises: room for improvement in e-procurement
11/20/2007 Business embraces green procurement
11/20/2007 Eco-management delivers
11/20/2007 Public sector: Getting real about e-procurement
11/20/2007 Greening your supply chain
11/20/2007 Saab: Take-off for new procurement
11/20/2007 Sourcing successfully from China
11/20/2007 Wiggling your way into first class
11/20/2007 How to gain respect
11/13/2007 GE: Speaking with one voice
10/26/2007 BP:Bridging the skills gap
    
 
 
 
 
Upcoming events
2 - 5 November, 2010
Brussels, Belgium
ProcureCon 2010, the 13th annual procurement conference, will provide you with new procurement best practices, new ways of looking at old problems, and an understanding of the skills needed to develop your ideas into realistic, achievable plans. For more information click here.