| Outsourcing to China: Setting up a China sourcing office |
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| Wednesday, 19 March 2008 | |
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Once importers reach a certain scale in their China purchasing, many start to consider setting up a buying office in China to manage the business. Doing so is, of course, a complex undertaking, and it would take more than a single article to cover the topic thoroughly. But in this excerpt from a broader interview, sourcing specialist Benjamin Dolgin-Gardner offers some quick pointers to importers who are considering an on-the-ground presence in China. By Smart China Sourcing
Q: How should overseas companies handle the process of registering and setting up a sourcing office in China? Foreign companies should look for a service provider specific to their industry that can help them set up an office, hire the right people, give them the right connections, manage the corporate structuring and report back to the foreign company on the progress. This is a total package service that not only establishes a corporate framework, but also gives life to the operations.
Q: How long should it take from the decision to open a China office until that office starts shipping product?
Q: What are the biggest challenges in managing sourcing operations in China? A sacred rule for Western companies doing business in China is: do not expect anyone in China to do something the way you would expect someone in the West to do it. To be fair this isn't always a bad thing, and in many cases it's a good thing. But either way it's best to have the details laid out clearly.
Q: What simple advice can you offer in the following areas?
Q: How should an overseas company assess the performance for its China sourcing operation? Is there a standard they should use? Benjamin Dolgin-Gardner founded Xtatix, a US brand of consumer electronics, in 2004. To better manage the branding and supply chain of Xtatix, Ben moved to Shenzhen, China where he began Shenzhen CE and IT Ltd as an independent sourcing services company. Ben speaks six languages (English, French, Chinese, Spanish, Portuguese, and Thai) and has proven expertise in sourcing, costing, quality control and troubleshooting in China. Shenzhen CE and IT Ltd offers its clients sourcing services, OEM brand management, and turnkey sourcing office setup with a focus in consumer electronics and computer products. |
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