I rediscovered a very good paper about a specific China industrial sourcing strategy: Knowledge-Based Sourcing. The paper was published by Booz & Co a few years ago but is still very relevant for China industrial sourcing.
The paper describes how buyers will get the most our of their Chinese supplier base when they commit themselves to understanding most aspects of their suppliers as opposed to a traditional arm length RFQ based business relationship.
We are strong proponents of this sourcing strategy for China, since the first day of procurAsia. And we have successfully applied it to all our projects.
It is really good to find this article by a famous management consultancy describing the main aspects of this approach we have implemented for so many years now. Here is the essence of Booz & Co’s article. Read More→