With companies from all over the world looking to extend their supply chain to newer and more profitable markets, it becomes imperative for many of them to source from rapidly developing countries. At the very top of such fast developing countries is China. It has been clearly established in the past few years that the rewards of China sourcing are huge and manifold. The benefits include vastly improved cost structures, innovative and high value products made using innovative processes made possible by an increasingly modernized and diversified supply base.
China is high on the sourcing list of many countries because they have the unique advantage of low cost, but highly skilled labor pool. They are trained for supporting production and also in research and development. China has becoming the hub of sourcing for manufacturers and traders from all over the globe because of their:
Low-cost plant and equipments
Liberal national policies and local government incentives
Rapidly growing domestic market that can help suppliers based here achieve critical mass quickly
Highly developed group of complementary suppliers
Overcoming Challenges – And There Are Many
The challenges involved in the process are many but the key ones are overcoming the differences in cultural and business norms and methods and the lack of transparency in the country’s supply market. Hiring established and successful consultancy firms can help companies overcome these initial challenges and be prepared for the ones they will keep running into at every stage of their progress.
The pressing challenges that companies face in the later stages include the protection of intellectual property rights. Most businesses come unprepared to deal with this issue which can severely limit the potential range of products they can include in their China sourcing endeavor. With competition becoming intense in this domain, companies not explicitly addressing intellectual property issues face the risk of losing out to those who come prepared to deal with it.
This once again highlights the advantages of involving an experienced consultancy firm in your China sourcing plan. They can make the roadmap ahead crystal clear for you and prepare you for dealing with such unforeseen challenges well in advance.Readmore
China is high on the sourcing list of many countries because they have the unique advantage of low cost, but highly skilled labor pool. They are trained for supporting production and also in research and development. China has becoming the hub of sourcing for manufacturers and traders from all over the globe because of their:
Low-cost plant and equipments
Liberal national policies and local government incentives
Rapidly growing domestic market that can help suppliers based here achieve critical mass quickly
Highly developed group of complementary suppliers
Overcoming Challenges – And There Are Many
The challenges involved in the process are many but the key ones are overcoming the differences in cultural and business norms and methods and the lack of transparency in the country’s supply market. Hiring established and successful consultancy firms can help companies overcome these initial challenges and be prepared for the ones they will keep running into at every stage of their progress.
The pressing challenges that companies face in the later stages include the protection of intellectual property rights. Most businesses come unprepared to deal with this issue which can severely limit the potential range of products they can include in their China sourcing endeavor. With competition becoming intense in this domain, companies not explicitly addressing intellectual property issues face the risk of losing out to those who come prepared to deal with it.
This once again highlights the advantages of involving an experienced consultancy firm in your China sourcing plan. They can make the roadmap ahead crystal clear for you and prepare you for dealing with such unforeseen challenges well in advance.Readmore
