Maybe an acquisition has resulted in overlapping assets. Or China is no longer a focus due to a shift in business strategy. Or perhaps it is more cost-effective to outsource China operations. Regardless of the reason for a China wind-down, there are many hurdles and regulations that are critical when divesting of your China assets, buildings, and most importantly—your people—of which you’ll want to be aware.
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The days of working fat and happy in China are over. It’s time to get LEAN. For many years increasing productivity has been at that forefront of any plan to increase profitability where manufacturing is involved. This applies in China and everywhere.
In the ongoing struggle to stay profitable in China, tax incentives are often overlooked. It is true that during the initial period when companies are developing their China entry strategy, tax incentives play a
One of the most tried and true ways to improve profitability when contract manufacturing with China suppliers is to reduce material costs. But it’s not about reducing them, per se. it’s about scrutinizing
The days of being able to take a mature product from Europe or America, bring it to China, and develop a business are long gone. Business expectations from 30 years ago are outdated. Thirty years ago Volkswagen famously took the Scirocco production line from Germany, moved it to Shanghai, and began selling the Santana brand. As an early mover in the China market, VW sold millions of vehicles and made the company massively profitable in the process. That China no longer exists today.
White collar productivity should not be overlooked when looking for opportunities to increase profitability in China. In the past, wages represented a relatively small percentage of the cost structure of doing business in China. This is no longer true today. Over the course of the last 20 years, China has undergone a massive transformation, and during this period, wages have increased an average of 10% per year. As a result, wages now, and specifically white-collar wages, represent a significantly higher percent of the overall cost structure. As such, white collar
On Thursday May 10th, regional leaders in supply chain and logistics gathered at the Cross-Border E-Commerce & Logistics Forum in Shanghai. Paul Stepanek, President, Complete Manufacturing and Distribution, was among the speakers.
Chinese Business Process Optimization
We’re often asked: “How is project management in China different?” In our experience, successful companies are doing three key things: more bite-sized milestones, more frequency of touching base with critical team members in the supply chain, and deeper dives. Let’s dive in.
Often times, when overseas companies are looking at China, they may be asking themselves : are we big enough to manufacture our products in China? Do we have enough volume?
The end game is obviously to improve the performance of a supplier. Nothing gets (and holds) their attention like improvements to their bottom line. How do we get there? In our experience, the most effective approach is to develop strong relationships that open doors…to data and more.