Wednesday, April 14, 2010

Successful China-based manufacturers - what are their attributes?


Read my previous post on who makes an ideal candidate for sourcing in China.

Large foreign multinationals excel in China since they can best leverage the benefits of China manufacturing - labor arbitrage and economies of scale . Whether these are WFOE's (wholly foreign owned enterprises) or contract manufacturers serving a single large multinational account, the more scalable the operation the better. In general bigger companies have more resources to leverage China's advantages than smaller operations.

Economies of scale allow large foreign multinationals to build sustainable manufacturing facilities in China much more easily than the small guys . The market size allows them to install their own Operational Excellence and Quality Assurance programs in their China plant cialis super active online. Managing quality and constantly improving operational efficiency are major challenges for plants in China, both foreign and domestic . Those that do it well thrive keflex.

Large multinational customers with large order volumes can form close collaborative partnerships with large China-based contract manufacturers, which empower employees, develop operational stability, enhance quality, improve delivery times, and increase customer satisfaction. One should not underestimate the value of a truly collaborative product development process between the designer and the China-based manufacturer. Such a mutually beneficial relationship has the potential to serve as the foundation of a lean manufacturing culture that spans from client to supplier.

It is notable that not only foreign multinationals with WFOE-facilities in China have the capability to institute the operational excellence programs they desire. As I discussed in a prior post, large international customers commanding massive order volumes, like Nike, have the resources to found training centers or corporate universities with their China-based suppliers to support mutual goals and strategies.

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