Similar to the pharmaceutical supply chain, luxury goods have their own complexities.

Until a few years ago, distribution of luxury goods in China were controlled by state owned companies with little knowledge about sophisticated marketing, distribution and supply chain management strategies. Under WTO commitments, companies like Alfred Dunhill were allowed to open their own stores in China in 2003 – the problem was they didn’t have an effective distribution and logistics solution for mainland China.

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Learn lessons from some of the leading companies in China

By Russel Beron

Innovation is a word we are hearing a lot more of in China these days. The consensus is that as manufacturing costs in China continue to rise and supply chain complexity increases, so companies have to innovate both to save money and to increase efficiency.

In this story we take a deeper look into what a few companies and individuals in China, both foreign and Chinese are doing to lead the way in service, supplier management, IT implementation, as well as cost and process efficiency. These companies and individuals were all winners of awards at the November 2007 CHaINA Summit.

Advances across the supply chain in China are taking the form of new IT implementations, greater levels of service through 3PL’s, better supplier management, strategic location of operations and an increased focus on domestic R&D and development of local human and other resources. Read the rest of “China’s Supply Chain raises the bar - Part I” or post a comment

By Shawn He Yuxun

Sourcing from China has evolved from a straight-forward, cost-driven approach to more elaborate and strategic varieties. While the recent product recalls did not seem to have impacted Chinese exports based on overall figures, however we have come across anecdotal evidence suggesting the otherwise.

Undoubtedly the initial sourcing interest was triggered by China’s notorious low costs, both direct (such as those for labor and land or rent) and indirect (rendered under a myriad of government export incentives, such as subsidized fuel costs, export VAT refunds, non-taxation and/or tax reduction).

Over the years the exercise has evolved from a static, per item price-driven modus operandi to more sophisticated ones. For example, many US buyers now employ a vertically or laterally integrated approach, or both. Read the rest of “Latest China Sourcing Trends” or post a comment

Following the great global transfer of manufacturing started in seventies of last century, the global transfer of the service industry has taken the first place as a new tide. And offshore outsourcing, as the keystone of the new-round global integration, brought Chinese companies both opportunities and challenges.
 
2007 Top 50 Service Outsourcing Providers in China by Chinasourcing is the first company list in China that faces the whole service outsourcing industry aiming at present the best Chinese …

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By Blake Keller

Much thought and effort goes into the selection of vendors, but how much effort do you put into selecting an audit provider? Many potential clients begin their conversations with “We have tried third party auditors in the past…”

Does that sound familiar? I can’t tell you how to pick one company over another. Your particular industry and needs will determine who is right for you. What I can do, is give you some advice about audits in general.

An audit in general terms is an objective evaluation of product, processes, and/or systems. Most importantly, an audit is a comparison of actual performance to predetermined standards. Note, please the emphasis on predetermined standards, and the means to evaluate your auditor is clear. You must first specify to what standards you desire your supplier to be audited. Feel free to ask your potential auditor to what standard they will perform an audit. Read the rest of “Evaluating your Audit Provider” or post a comment