The reality of sourcing in China change fast. The times when it was enough to find a reliable Chinese supplier of any good to secure a strong advantage compared to competitors are over. Today, Chinese labor cost increases and the continuous move of Chinese supplier toward increased added value, it is important to evaluate its sourcing strategy from time to time.
One of the existing useful frameworks is the “Level of China Sourcing”. The infographics below summarize four levels of sourcing, based on its scope, commitment of the organization to it and the the return that can be expected.
It is inspired from a framework developed by BCG (for example in “Beating Your Competition on China Sourcing”). I have updated it using procurAsia’s practical experience in the field.
The main purpose of the framework is to evaluate whether your company can do more (and benefit more) from China sourcing. It is also to estimate whether the organization has the will and resources to move to the next sourcing level.