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Gaining Competitive Advantage through Local Production and Operational Excellence


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Gaining Competitive Advantage through Local Production and Operational Excellence

  1. 1. Member on Stage:Gaining Competitive Advantage through LocalProduction and Operational ExcellenceArie Schreier - PTL GroupMore than Management ™
  2. 2. www.PTL-Group.comWho is PTL Group?OverpenetrationProjects(Currently 30ongoing)Established sinceYear 2000Warehouses &office :BeijingShanghaiGuangzhouEmployeesFactoryincubation inChangzhouSales Offices in:ItalyThe NetherlandsIsrael
  3. 3. www.PTL-Group.comExecuting of:•Factory set up projects•Incubation of factoriesactivityIndustrial projectmanagementManagement of:•Import•Warehousing•RMB contracts &Invoicing•VAT refunds•Loans and promissorynotes•Collection and transferof funds overseasManagement oftrading &LogisticsPerforming of:•Operational audits•Work processesimprovement•Interim Management•External controller anauditor•Full scale TurnaroundBusiness recovery& TurnaroundPTL activity in China
  4. 4. www.PTL-Group.comTrends in the China 1For the Chinese government:Made in China Created in China Designed and innovated in ChinaMade in China Sold in China Made AND sold in ChinaFor the foreign companies:
  5. 5. www.PTL-Group.comTrends in the China 212th 5 year plan: 2011-2015:• 2 trillion RMB for Science & Technology (priority on Biotech)• 12 Billion RMB for new drug development• 1 Million jobs in Biotech by 2015• 8% of 2015 GDP : Biotech, new energy, emerging industries, new generation IT• By 2015 2.2 % of GDP spent on research and development (USA = 2.7%)For many European companies who never dreamt of going toChina, China becomes their only hope.For many European companies who never dreamt of going toChina, China becomes their only hope.Fierce competition to overseas companies by the locals inevery field but still lots of opportunities
  6. 6. www.PTL-Group.comThe “Go-West” & “Go-Inland” StrategiesChinas provinces:Real GDP growth % yoy 2010Chinas provinces:GDP per capita RMB, 2010Source: Deutsche Bank Research
  7. 7. www.PTL-Group.comFinancial crises!• Buying power is reduced• Traditional supply chains are fragile or broken• Fierce competition by overseas companies (Chinese mainly)• Companies may have to follow their international clients to ChinaAt the same in Europe and the USA…For many European companies who never dreamt of going toChina, China becomes their only hope.
  8. 8. www.PTL-Group.comLuigi, it seemsthat we have togo to China….
  9. 9.• Increased cost of labor• Government prefers innovation, green and high-tech• Local competition is getting better and stronger• Markets are spread all over China• Licenses and regulationWhat is waiting for the new comers….But: the market in China is still thirsty for good, high qualityand innovative products
  10. 10. www.PTL-Group.comConduct your business in China like Chinese• Sell in local currency• Use local staff to do the work for you but under closesupervision• Set up logistics and technical support• Set up manufacturing/assembly plant to support your salesIN CHINA
  11. 11. www.PTL-Group.comAssembly and manufacturing in China to support local sales• Applying for government tenders (made in China requirement)• Overcoming import restrictions (SFDA)• Improving value proposition to local clients• Penetrating new segments in the market• Reducing cost structure, improving sourcing, improving QC• Logistics center for AsiaIf you can’t do it by yourself - outsource
  12. 12. www.PTL-Group.comChina Industrial Incubator Initiative (CI3)• Located in Jiangsu Wujin Economical Zone, Changzhou• Owned and operated by PTL Group• 13,000 sq m of workshop and office space
  13. 13. www.PTL-Group.comChina Industrial Incubator Initiative (CI3)
  14. 14.• Using existing infrastructure• Fast set up of Manufacturing capabilities• Offering engineering and managerial added values• Transparency• IP control• Modular growth strategy• Product localizationAdvantages of the incubator business model
  15. 15. www.PTL-Group.comIncubation ConceptsRawMaterialProcessFinishedGoods w/hInboundLogisticsEngineering LocalizationProjectManagementOut BoundLogisticsEntityRegistrationHR ManagementFinancialManagementRecruitmentReportingGov’ Relations
  16. 16. www.PTL-Group.comTaking Advantage of Chinese Gov’ funds• Make local Government fight for your project• Identify local funds through local contacts• Find your investment leverage• Make high level officials commit to your project• Use the local banks to finance your activity
  17. 17. www.PTL-Group.comFactory Setup Project – Lycored
  18. 18. www.PTL-Group.comSummary• Challenges of competing in China are greater than ever• Opportunities in the Chinese market are greater than ever• To compete in China, a full scale operation system is needed• If you can’t set it up by yourself – outsource• Incubator is the current trend for a quick set up of decentoperation
  19. 19. www.PTL-Group.comShanghai Head Officewww.ptl-group.comPhone: +86 21 64453190, Email: arie@ptl-group.comTHANK YOU FOR LISTENING!China • Israel • The Netherlands • Italy