Companies sourcing from China are reaping huge benefits but also encountering increasingly tough challenges, both internal and external. A recent BCG study reveals the nature of the challenges and summarizes ten key practices that separate the most effective China sourcing offices from their peers: defining a clear sourcing strategy; aligning the China sourcing organization with global procurement; enabling collaboration across regional and functional boundaries; integrating suppliers and R&D into design; systematically developing suppliers; recruiting, developing, and retaining the best people; gaining 100 percent transparency into sourcing volumes and savings; providing internal education to increse awareness and understanding; tying incentives to sourcing targets; and addressing real and perceived risks.
Authors: David Lee, Jim Hemerling
Source: Boston Consulting Group (BCG)
Subject: International – China