In the current economic recession almost all companies feel particular pressure from the market. Other than that, we have to think about the vertical range of manufacture to reduce the market pressure and to improve the cost structure. A possibility to smart the manufacture is outsourcing or system supplier development. These are parts of the more difficult tasks of a company.
Here China offers own benefits:
- Well educated engineers and managers
- Low labour and fixed costs
- Frequently low raw material prices
- International experiences of the current system supplier
However, before you choose system supplier development, sourcing, or even start up your own business in China, it is advisable to analyse exactly what the objectives of your engagement in China are and to consider what steps will be necessary for you to be able to achieve them. The time and cost plan for your business is mandatory. You also have to include a procurement process and strategy in your whole business strategy.
If you only like to exploit the cost effect or procure components unregularly in China, the simple Sourcing would be the best choice. Only for high quality components in medium to high quantities, or if you are planning to get active in the Chinese market yourself, the options of system supplier development or a private (manufacturing) company in China should be given more consideration.
We, the Boiwen&Company support you for identifying and realising of your system supplier in China. Depending on the scope of requested services we assume all regulatory tasks – starting at the search of potential partners to negotiation of framework contracts and the organisation of the internal and external quality assurance.
And if you like your own manufacture or distribution, we are pleased to support you with our Know-how. In that case, you can find some more information here. Use our contacts and service to reduce your costs.
We care to explain your chances of an engagement in China.