Pros & Cons for China Sourcing Options
Think strategically and consider long-term plans before you pick your path.
A. Source selective components using a China sourcing agent
PROS: Easy to set up
CONS: Low-cost savings; little awareness of Chinese markets
B. Source products through a representative office in China
PROS: Hands-on approach and development of local expertise lets you sleep easier at night.
CONS: Increased management demands
C. Establish a global procurement center
PROS: Maximize savings internationally; build deep relationships with CHINA suppliers
CONS: Requires good enterprise and communication systems within the company
D. Set up a joint venture or wholly foreign-owned operation
PROS: Production with rapid response; better positioned to capitalize manufacturing enterprise in China on growing CHINA strengths
CONS: Large fixed investment
E. Create a full manufacturing, distribution, and sales network
PROS: In some industries, China is the major growth market
CONS: CEO or board decision; must have long-term investment and exit plans |
