Various levels of advantages while deciding sourcing strategy on Chinese suppliers

1. 5 Levels of China Sourcing Advantage
Level 1: Testing The Water
Recognize China’s potential
Source some products on a trial basis
Have no formal China initiatives
Not yet organized for sourcing in China
For details mail at: anand_khisti@yahoo.com

2. 5 Levels of China Sourcing Advantage
Level 2: Purchasing Components and Complete Products
Focus on reducing purchasing costs
Obtain valuable understanding of the supply base
But gain little defensible advantage
For details mail at: anand_khisti@yahoo.com

3. 5 Levels of China Sourcing Advantage
Level 3: Developing Comprehensive Sourcing
Sourcing plan includes –
parts
products
Talent/R&D
Advantage gained from
supplier relationships
product development
proprietary tools and processes
market intelligence
For details mail at: anand_khisti@yahoo.com

4. 5 Levels of China Sourcing Advantage …continued
Level 4: Adopting an Integrated China Strategy
View China as both marketing and a sourcing location
Leverage synergies between and export sourcing and domestic
production
integrated capacity planning
flexible production
For details mail at: anand_khisti@yahoo.com

5. 5 Levels of China Sourcing Advantage …continued
Level 5: Capturing Global Advantage
Exploit global synergies in –
cost structure
manufacturing strategy
supply chain
Leverage best global capabilities
Deploy high cost assets
For details mail at: anand_khisti@yahoo.com