How to manage your Operation management department in China

June 13th, 2007  by China Business Success Stories

By Romain Guerel

How to manage your Operation management department in China Part IPersonally, I think the operation management department is the most important department for the success of your company in China. It may not look the sexiest as Finance and Sales & Marketing but it is essential.
You can have a very good product but if you cannot deliver it on time, it is useless. Nobody will buy it. So here are my tips for an efficient operation management department:

- Supply chain shall be put at the center of your strategy for success in China;
- Do not promise (Time delivery) if you cannot fulfill;
- Chinese decision process can be very long but when it is taken shall be implemented immediately. Chinese bosses will often choose not only the cheapest but also the fastest.
- Select a range of products you want to sell in China but not the all spectrum of products in your catalogue;
- Establish as soon as possible safety stock;
- Set up clear processes in your logistics and purchasing department in coordination with the general management, the finance and the sales department;
- Install asap an ERP system;
- Chinese companies value price, speed and service quality. Be stronger than your competitors on these three aspects;
- Train constantly your staff and make internal audits especially in the purchasing department;
- Bring Foreign expertise at the beginning of your new venture in China and make close connections with the logistics department in your HQ;
- Keep close contacts with China customs. Laws & regulations change very often.

Romain Guerel, www.chinaandi.typepad.com

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