March 2011 Archives

TCA.jpgThe China Analyst is a quarterly knowledge tool by The Beijing Axis, which also sponsors The China Sourcing Blog. The China Analyst - March 2011 has been released, and can be downloaded free of charge at the link provided below. 

In this first edition of 2011, we have peered into the future that likely lies ahead for China and the changing opportunity landscape for foreign firms, with the following lead features: 
1. China in 2030: The full extent of China’s rise in the coming decades and where it is likely to stand by 2030 
2. Strategic Options in China’s Construction Industry: The foreign firms who stand to profit are those with the advanced technology China needs, as well as those willing to look at new collaborative models 
3. Engaging China’s Machinery Industry: China presents options for foreign firms as an export and investment destination, and as a source of capital 
4. China’s Clean Coal Revolution: China is increasingly engaging clean coal, presenting scope for foreign firms to partner with Chinese firms 

Of course this edition also contains all the regular sections, including China Sourcing Strategy, highlighting new China sourcing opportunities for foreign steel players; China Strategy, featuring an investigation of China’s largest coal producer, China Shenhua; China Capital, including a new Hong Kong IPO Watch sub-section; and four Regional Focus sections with analysis of the latest China-related trade and investment activities for Africa, Australia, Latin America and Russia. I particularly want to point out a special feature on China-sponsored special economic zones in Africa, including a map. 

I hope you enjoy this edition, would love to hear your feedback.

Software Advice has just released is overview key trends in procurement systems for 2011. Those sourcing from China may consider implementing some of these processes in their of businesses.

First, with rising costs elsewhere in the supply chain, managers are increasingly turning to automated procurement systems over manpower. Most active in the implementation of procurement software are mid-sized businesses, those with revenues between USD 100 and 750 million, which are turning to cloud software. This unique form of data management operates without being grounded to a server but instead on an extended network of users.

Cloud and other types of software are allowing procurement specialists to network outside of their own organisations, another trend noted in the Software Advice report. Greater connectivity within the industry has increased the viability of reverse auctions, where suppliers can collaborate for heightened purchasing power. 

The main advantage of an upgraded procurement system is enhanced information flows. For example, through order history tracking and via the data obtained from an expanded network, down times in purchasing can be identified, at which point prices are cheaper. Furthermore, greater information swaps promote collaboration between a business' procurement and finance divisions, improving the budgeting process. Two applications cited in the report for this purpose are purchase-to-pay and supplier performance management applications.

The article also states a trend toward automation, not just for the purchasing cycle, but for the endorsement of contracts--a move that could further expedite the procurement process. However, the arrangement of this type of system seems a long way off with most Chinese suppliers.

For more details about these trends and others, see the full report hereThe homepage URL is here.

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