One of the buyers' stories - how should Chinese sourcing begin?

Enterprise name: WPT, American enterprise, small scale
Market positioning: filtering technology is the core competitiveness of the filtering unit system
Person: Chairman and general manager: Paul
Purchasing director: Steven
Technical director: Walter
Project Manager: Frank
Scene: WPT's main market turns to Asia. How should China's purchases start in order to achieve higher profitability?
WPT &ldquo in the United States; design, manufacturing China ” project schedule, 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 et al.
While Steven was preparing, Paul reviewed the sales figures for last year: sales in Asia have risen to 65%, and are expected to grow by around 10% this year. But the Asian market efficiency is always unsatisfactory, on the one hand because of local competition, the price is difficult to reach the level of the market, on the other hand, WPT years “ America design, American manufacturing strategy has been challenged by &rdquo.

Paul, walking to the conference room, mused as he walked: "can you hear some good news today?"
Steven Paul, technical director of the project manager Frank Walter, after taking a seat, began to report on. Overall content:
1, “ America design, China manufacturing ” is the practice of many large U.S. companies over the years, even some companies now are beginning to “ Chinese design, manufacturing &rdquo, China; only do research and management in the United States
2, manufacturing and supporting China resources are very rich, despite a big increase China labor costs in recent years, but the comprehensive competitiveness is very strong; manufacturing technology and quality China ability of excellent enterprise, not the United States than commissioned WPT factory
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 &ldquo, the United States design, manufacturing &rdquo in China is feasible, and the final profit margin can be increased by about 5%

Paul is not satisfied with the profit margin increase of 5%, the cost of business costs and the cost of 10% Steven asked: "the basis for this cost and whether it may be substantially reduced?"
"This is an average of many other US companies," says Steven. "It has been very difficult to reduce.". But his attention to Chinese an industry service platform, process equipment, it is dedicated to the foreign enterprises in China procurement services, the specific procurement operations have some solutions, can greatly reduce the risk, and save a lot of cost. According to the website itself, it can help buyers reduce the purchasing cost of 5~10%.

Paul let Steven open for everyone to do a demonstration of network equipment, Walter, Frank some specific problems, Paul hope you according to their own in-depth study about the process equipment, and agreed the next Monday after the seminar in order to reach a consensus: the process of network equipment, through &ldquo design, manufacturing Chinese; ” 10%, enhance the rate of profit target!