Aim High, Act Fast: The China Sourcing Imperative

The Boston Consulting Group---For more than a decade, "Made in China" has been a compelling sourcing option. Today, in the consumer industry, it is becoming an imperative.

Consider some recent news stories: Ford announced plans to buy $1 billion in auto components from suppliers based in China. Wal-Mart established a sourcing division in Shenzhen to buy directly from Chinese factories. And Philips Electronics'23 factories in China surpassed $5 billion in goods produced, most of them for export. For those companies and many others, the story starts with cost savings on components and finished goods---but that is not where it ends. The overarching objective is cost advantage.

Main contents:

·The Quest for Cost Savings

·Five levels of Sourcing Advantage

·How to Proceed