An Indian manufacturer of home lighting products has been facing stiff competition in the market due to its higher cost of production which leads to its products being as priced higher than its competitors. The company is therefore exploring sourcing its products from China where several low-cost suppliers are based. a. What factors must the company consider for procurement from China? How can it best facilitate its procurement on an on-going basis? b. Explain the role of government agencies in such procurement. What related procedural aspects will the company have to handle additionally for such procurement?
An Indian manufacturer of home lighting products has been facing stiff competition in the market due to its higher cost of production which leads to its products being as priced higher than its competitors. The company is therefore exploring sourcing its products from China where several low-cost suppliers are based. a. What factors must the company consider for procurement from China? How can it best facilitate its procurement on an on-going basis? b. Explain the role of government agencies in such procurement. What related procedural aspects will the company have to handle additionally for such procurement?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 1.7A: Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each...
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An Indian manufacturer of home lighting products has been facing stiff competition in the market due to its higher cost of production which leads to its products being as priced higher than its competitors. The company is therefore exploring sourcing its products from China where several low-cost suppliers are based.
a. What factors must the company consider for procurement from China? How can it best facilitate its procurement on an on-going basis?
b. Explain the role of government agencies in such procurement. What related procedural aspects will the company have to handle additionally for such
procurement?
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