Frank started the "made in China" project management related preliminary work after Monday's meeting. The company's intention is very clear: through China manufacturing, reduce project costs, improve competitiveness and profitability. Frank learned that the basic situation is that, although the manufacturing costs of Chinese products have some advantages, but the company's project management costs will rise. China's delivery period is obviously short-term in the United States, and the result will have to be determined in the light of our company's situation.
Frank learned from other corporate peers that the cost of project management in China would rise by 10~15%.
Frank hopes to get some basic concepts in the process of equipment network. Therefore, we have logged into "material market price" and "intelligent quotation system" to understand the delivery of materials and manufacturing and price in China. He found that most of the Chinese material price is lower than that of the United States, product price is lower than the budget of supply price about 10~15%, difference price of transportation costs in Southeast Asia project , The cost of making in China is reduced by 15~20%. But after plus the added cost of project management about 10~15%, the cost advantage is only about 5%, it is hard to reach the goal of 10% companies to increase profits!
Frank try to contact with platform service, hope to discuss with technical adviser: Is it possible to reduce China's purchasing costs and project management costs?
The process equipment network consultant agreed to communicate with Frank via video, and Frank received the following preliminary conclusions:
The process equipment network adopt an online business and online project management model that can help foreign buyers and Chinese manufacturers to reduce management costs. Platform side has done an analysis: can reduce the total cost of the project, respectively, 3% and 2% or so.
Process equipment network registered users are rich in manufacturers, materials providers, service providers resources, through the platform of full competition and online business operation, it can reduce the price of 5% or above for manufacturers, material suppliers, service providers.
If the purchaser can adopt the technology, quality, management of the local project management, the cost can be greatly reduced, and the process of equipment network talent pool is rich in human resources for retrieval.
Frank through the company's products and years of project experience,he believes that if adopt process equipment network scheme, can also reduce the comprehensive cost of about 10%, in this way, the company's goal of increasing profits by 10% can even be exceeded.
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