Multinational Purchasing and Purchase From China

Oct 09, 2007 • By • 213 Views

Multinational purchasing is not an easy task for those purchasing in small lots of a wide variety of things without strategies, example, to purchase from China. Apparently most of the multinational purchasing groups are tycoons in their respective industries with ability to wield a lot of clout. However, this scenario cannot sustain for long, given the pressure of bottom line on global sourcing community, and efforts are afoot to setup on of China's ambitious multinational purchasing center and catch the attention of multinational purchasing community in a short time.

-Move To Push For Purchase from China

Chinese government is encouraging multinational purchasing and global sourcing companies to purchase from China through foreign trade policy changes. The broad outline of the changes is here

1. Issuance of foreign trade licenses to qualifying multinational purchasing centers

2. Establish a framework of management to wide-ranging trading models, including ODM

3. Simplify of procedures for foreign exchange, customs and taxation

Besides, the Chinese Foreign Trade Department suggests that large Chinese multinational purchasing and global sourcing companies will take part in purchasing conferences as purchasers. Private sector, on its part, is gung ho and is gearing up for providing information service to multinational purchasing and global sourcing organizations. The centers offer supporting facilities like exhibition halls for trade shows and multifunctional exhibition hall, clearance/delivery center, marketing nets, group multinational purchasing and global sourcing service center, besides many.

-Multinational Purchasing Service for Global sourcing Industry

Services like routine inspection of multinational purchasing agencies will be conducted at the behest of China suppliers. Multinational purchasing groups are evaluated against various parameters which include purchase trends, global sourcing directions, purchasing stresses allied with each country, purchase demands, rules pertaining to entry into supply chains; for those looking to purchase from China- evaluating suppliers on similar certain criteria as demanded by potential global sourcing companies.

-Purchase from China

A study reveals 72% of surveyed global sourcing companies are planning to purchase from China by 2009, a quantum leap in 10 years. No wonder procurement agents for global sourcing and multinational purchasing companies wanting to purchase from China are lining up with service agents that make purchase from China risk free in every respect.

Another angle for interest evinced by China to serve global sourcing and purchase from China is the strengthening of RMB by 8% which otherwise can make global sourcing companies give up purchase from china.

Don't get discouraged to purchase from China, which is a far cry, put in a solid risk management plan.

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