Manja Ostertag

Quality-oriented Procurement in China As a Low-cost Country Manja Ostertag

China as well as other low-cost countries have gained increasingly in significance as procurement markets for companies aiming to optimize their supplier basis as well as the cost performance within its supply chain. Low-cost countries like China can provide products and services at a significant lower price level due to lower labour, manufacturing and overhead costs. But next to the tremendous chances provided by these procurement markets companies intending to source in these countries and benefit from the local market conditions are increasingly faced with peculiarities and challenges which can influence the whole sourcing process. A different culture, mentality and business behaviour, the non-transparency of the market and supplier structure as well as a partially underdeveloped quality consciousness require the modification of traditional sourcing processes. The application of quality assuring procurement instruments within each sourcing step as well as a sensitive and reasonable sourcing approach are thus indispensable for a successful sourcing project in China an other low-cost countries.