Getting more from sourcing more in China

Multinational Companies are often finding it difficult to solve the problem of sourcing in China

Sourcing in China is a somewhat holistic problem for multinational companies (MNCs) to solve. Sourcing is about managing the suppliers that deliver materials and components to manufacturing plants and, in ideal situations, work in partnership with manufacturing managers to incorporate their components or subassemblies smoothly into the production process – and in even more ideal instances, work with product developers to design components and products to cost and to manufacturability. But MNCs in China not only source goods for their operations there, but also buy goods, parts, or materials from Chinese suppliers (or foreign companies making products in China) to use in making products elsewhere in the world. Thus, managing supply isn't just about winning in new middle-class markets in China, it is also about winning globally.