Enterprise name: WPT, American enterprise, small scale
Market positioning: filtering technology is the core competitiveness of the filtering unit system
Character:Chairman and general manager: Paul
Purchasing Director: Steven
Technical Director: Walter
Project Manager: Frank
Scene: WPT's main market will turn to Asia. How should China's purchases start in order to achieve higher profitability?
WPT's "American design, made in China" workshop will be held as scheduled, purchasing director Steven to the meeting room, early to open the computer, check the projector and the network, open the ready PPT notes, waiting for the general manager of Paul’s arrival.
At the same time as Steven was prepared, Paul again to view the sales data of the previous year: sales in the Asian market has risen to 65%, this year is expected to grow about 10%. But the Asian market efficiency is always unsatisfactory, on the one hand because of local competition, the price is difficult to reach to the U.S. market level, On the other hand, WPT's strategy of "American design, made in America" has been challenged for many years.
Paul walked to the conference room while meditating: if we can hear some good news today?
Steven Paul began to explain the report after technical director of the project manager Frank Walter taking a seat.The overall content:
1, "American design, made in China" has been the practice of many large companies in the United States for many years, Even some companies now are beginning to "China design, Chinese manufacturing", only to do research and development and management in the United States.
2, Manufacturing and related resources are very rich China, Although China's labor costs have increased considerably in recent years, But comprehensive competitiveness is still very strong; The manufacturing skills and quality capabilities of excellent Chinese companies are not inferior to those of the US factories entrusted by WPT.
3, The commercial reputation of Chinese enterprises is uneven, and the business risk is great. The project needs to spend 10% or more management costs. Therefore, the adoption of "American design, made in China" is feasible, and the final profit margin can be increased by about 5%.
Paul isn't satisfied with a 5% profit margin boost, asking Steven about the business risk and the cost of 10% : What is the basis for this fee and is it likely to be substantially reduced?
Steven told: This is the average value of other U.S. companies in the actual value.It's hard to lower it again. But I am concerned about an industry service platform in China --- process equipment network, It specializes in the procurement of foreign enterprises in China, There are some solutions to the specific purchasing business,They can greatly reduce the risk, and save a lot of cost. According to the website claimed that the purchaser can help reduce the cost of procurement of 5~10%.
Paul let Steven open the process network and give everyone a demonstration, Walter, Frank asked some specific problems, Paul hope everyone to study further about the process equipment network according to their own work, And we agreed to reach a consensus after the special discussion next Monday: using process equipment network, through the "American design, Chinese manufacturing", improve profitability with 10% target.