China Sourcing – on Solid Principles
US manufacturers are rushing to China to cut costs, building their own plants orChina sourcing. The China sourcing strategy is based on solid grounds of core business principles which are apparent in every aspect. Over the decade, China sourcing has evolved and carved a niche for itself as being strategic business partner to large corporations.
Contrary to the fading notions China sourcing is cheap due to cheap labor; true reasons are evident in its modern approach to quality and productivity.
-Role of Cheap Land Cost on China Sourcing
Land cost being one of the major cost components in manufacturing has been the top contributor to the success of China sourcing till date. The logical extension of this is driving industries to setup shops in China as an alternative to China sourcing. Even after China Ministry of Land and Resources set minimum selling prices (7.7USD/square meter in northwestern Xinjiang to 107USD/square meter in the suburbs of Shanghai) for industrial lands, the prices still remain very attractive.
-Emphasis on Vocational Training Driving China Sourcing
Unlike yesteryears, emphasis in technical training is on improvement of efficiency in enterprises. Introduction of innovative training methods like elements of competitive market economy are paying back emphatically. Vocational and technical education and training (VTE) is gearing up to take on the future skilled labor demands. China is allowing foreign investment and involvement in industrial training which not just helps meet demand for skilled workers but brings in western perspective which ultimately benefits the economy and China sourcing.
-Tighter Inflation Control to Boost China Sourcing
No points for guessing how inflation control contributes to improve China sourcing. Lower inflation augments the overall economic situation besides complementing low input costs and labor costs, which is what exactly China sourcing is actually thriving upon. To China’s luck, both inflation and ‘Whole Sale Price Index’ have been kept low consistently.
-Outsourcing
The fact that China sourcing is taking different shapes to suit to situations is evidence that it is prospering. China sourcing global or American company will better equip to take on competition even by embarking on China manufacturing. Several reports, including from Americans, predicts manufacturing jobs shifting across the globe with increased China sourcing activities. To make the story short, all the previously perceived risks of China sourcing or outsourcing to China are only hot air, given that the China sourcing companies conduct due diligence.
Tootoo.com, the leading B2B platform, combining vertical search engine with value added service portal. It has more than 430 000 China quality suppliers and provides top quality B2B services to both sellers and buyers worldwide.
Article Source: ArticlesBase.com - China Sourcing – on Solid Principles