Sustainable Sourcing in Emerging Markets like China

Christopher Game at Procurement Leaders has up a post that is worth deciphering.   He uses vague terminology to avoid being judgmental in these emerging markets, but he is very clear on what he sees. Check it out here.  I paste a few points below. Parenthetical points are mine.

  • Ask for references from customers of similar product type and follow these up
  • Create short and medium term business cases on a TCO (Total Cost of Ownership) basis
  • Integrate your BRIC (Brazil, Russia, India China) partners into your own organisations and continue to grow this
  • Measure value not just price. Changing the focus a little will move the sustainability horizon further out
  • Ensure that contracts include sufficient back doors and penalties and that they are understood.
  • If at all possible implant an expat or look to your emerging market (third party)  partner to do so to help overcome the cultural and communication barriers.
  • Lastly see whether you can use the partner to help you access local markets, this may help keep the arrangement viable even longer.

Really well said and I will add nothing here, but recommend the post

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Posted in: China, Chinese Culture, Customers, Market Entry, Sourcing

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