Guideline for the Development of Chinese Suppliers - Vodicka Matthias
For engineering goods the bought-in part costs represent a big share of the
overall production costs. Facing increasing global competition, many German
engineering companies identify low-cost sourcing from China as one of the
remaining levers to reduce costs. But shifting purchasing volume to China requires
in general the development and improvement of new suppliers. In order
to do so, what methods do exist? How do they match the specialties in
German buyer Chinese supplier relationships? And, what can be done to
boost the results? Based on the state of the art in literature and in concerned
companies, the author Matthias Vodicka analyzes the current approaches and
illustrates their strengths and weaknesses regarding their use in China. An
adapted Balanced Scorecard is designed, which, including the identified drivers
of success, aims for the improvement of the buyer supplier relationship
itself. With this, a strategic guideline and an action plan can boost the outcomes
for both parties. This work addresses companies which are (or plan to
get) involved in China sourcing activities and those, who are generally interested
in the issues occurring for Western companies in China.
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