Group Purchases Within China

July 21st, 2008  by China Business Success Stories

Dear All,
 
To introduce my company briefly, my company provides strategic procurement services in greater China region, meaning we help to set directions and develop initiatives to bring purchasing costs down for our clients.
 
We have clients whose annual purchasing budget exceed RMB100 million, and with an in-depth spend analysis, there are multiple commodities with annual purchase exceed RMB10 mil. To some smaller suppliers, securing a 10mil annual contract is substantial but to the bigger ones, these contracts don’t add weight to their sales. Sadly, supplier management is a daunting task in China, where reliable supply in term of unit cost to quality to delivery is hard to come by. Dealing with bigger and more established suppliers becomes the only solution. 
 
I see opportunity to set group purchases within China. The local suppliers operate rather uniquely and need to be managed in local manner, My client is receptive of this initiative but I see the forward challenge, first being identification of the “commodity selection”. I would like to set a discussion platform within the CBG to get the ball rolling.
 
Once established, I would think this group purchase alliance platform could benefit entity outside CBG, meaning the boundaryless purchasing communities.
 
Please advise your thoughts. Many thanks
 
Regards,
Ken Fong

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2 Responses to “Group Purchases Within China”

  1. lucy Says:

    Hi Ken:

    It is a good idea .
    I am so glad to saw your article here .
    where are you from are you Chinese ?

  2. Freelancer Says:

    Dear Lucy, You could contact me at “ken.fongyk@gmail.com” to further the discussion. Thanks.

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