Dragon Sourcing conducted a case study to analyze potential locations in China for a consumer goods company to move production from Taiwan. They considered Xiamen and Shenzhen based on criteria like cost, convenience, and industrial infrastructure. Cost analysis found building rental costs of $4-150/sqm in Shenzhen and $7-30/sqm in Xiamen, with land costs of $130-720/sqm and $80-700/sqm respectively. Both cities offered export processing zones that could reduce import duties and provide customs benefits. The study provided a detailed comparison to help the client decide the best location for their new China operations.
A detailed case study on PE film and the major objective of this project is to qualify new suppliers from 11 low cost countries for our client, one of the largest packaging manufacturers in the world.
Dragon Sourcing case study Supporting New Factory launchDragon Sourcing
Dragon Sourcing -http://www.dragonsourcing.com/ was selected to carry sourcing services to support the launch of a new factory in China by selecting world class competitive suppliers in China to cover all needs of the new factory
China Factory Location Analysis & Sourcing Case StudyDragon Sourcing
A Consumer Good company was looking to move production from Taiwan to China to deliver savings and
scale production. The approach taken was split into 3 stages.
Case Study-Indirect China Strategic SourcingJohn William
Strategic sourcing is one of the important aspect for effective sourcing activities. This case study will help you to know the indirect China strategic sourcing. To know more visit: http://www.dragonsourcing.com/asia-sourcing/
Case Study-New Plant Building “Capex Sourcing in China”John William
China has become a major sourcing destination for capex sourcing. Capex sourcing plays an important role for building new plant. To get more information about capex sourcing in China visit: http://www.dragonsourcing.com/china-sourcing-company/
A detailed case study on PE film and the major objective of this project is to qualify new suppliers from 11 low cost countries for our client, one of the largest packaging manufacturers in the world.
Dragon Sourcing case study Supporting New Factory launchDragon Sourcing
Dragon Sourcing -http://www.dragonsourcing.com/ was selected to carry sourcing services to support the launch of a new factory in China by selecting world class competitive suppliers in China to cover all needs of the new factory
China Factory Location Analysis & Sourcing Case StudyDragon Sourcing
A Consumer Good company was looking to move production from Taiwan to China to deliver savings and
scale production. The approach taken was split into 3 stages.
Case Study-Indirect China Strategic SourcingJohn William
Strategic sourcing is one of the important aspect for effective sourcing activities. This case study will help you to know the indirect China strategic sourcing. To know more visit: http://www.dragonsourcing.com/asia-sourcing/
Case Study-New Plant Building “Capex Sourcing in China”John William
China has become a major sourcing destination for capex sourcing. Capex sourcing plays an important role for building new plant. To get more information about capex sourcing in China visit: http://www.dragonsourcing.com/china-sourcing-company/
Substation Project Case Study by Dragon SourcingJohn William
Here is a Strategic Sourcing case study by Dragon Sourcing on AIS, GIS, and Transformer in substations for the year 2019 covering China. For details contact: www.dragonsourcing.com
Strategic Sourcing Case Study-White Goods sourcing in China, Turkey, VietnamJohn William
This case study focuses on sourcing white goods in China, Turkey, Vietnam. These countries very popular to source white products. To get more information visit: http://www.dragonsourcing.com/vietnam-sourcing/
Strategic Selection for setting up a new manufacturing facility for a global ...John William
Making a strategy for setting up a new manufacturing facility in Asia for a global security systems is very important. To get more details visit: http://www.dragonsourcing.com/asia-sourcing/
Global Sourcing Case Study (Chinese Appliances Market)John William
This case study presented by Dragon Sourcing limited is about the key factors influencing the global sourcing procedure in Appliances market, to know more visit: http://www.dragonsourcing.com/
MBA in Shipping & Logistics with 3 years experience in Trade Compliance & Cu...Anoop Sharma
MBA in Shipping & Logistics with 3 years experience in Trade Compliance & Customs in Automotive Industry. HTS Codes, FTA Analysis, ECCN Codes, Import duties, Framing trade compliance policies are prime expertises.
Vietnam Case study for Commercial Automotive PartsJohn William
You can choose Vietnam to outsource commercial automotive parts. In present scenario Vietnam could be one of your best choice for sourcing activities. To know more visit: http://www.dragonsourcing.com/vietnam-sourcing/
Strategic Sourcing Case Study – Wind Turbine IndustryJohn William
Here is a case study on strategic sourcing of a wind turbine industry in China and India. To know more about China and India sourcing visit: http://www.dragonsourcing.com/india-sourcing/
FAN Induction Motors Sourcing Project Case Study by Dragon Sourcing John William
Here is a case study by Dragon Sourcing on FAN Induction Motors Sourcing Project from the Electrical Components category of Consumer Goods sector for the year 2014 covering China, India, Indonesia, Malaysia, South Korea, Thailand, Turkey, Vietnam. For details contact: www.dragonsourcing.com
Global Sourcing Case study in Appliances MarketDragon Sourcing
This market survey identifies and highlights the new competitive suppliers, 5 major spend categories in the selected sourcing countries.
For more information, please visit: www.dragonsourcing.com/
Strategic Selection of FTZ for setting up a new manufacturing facility for a ...John William
This case study focuses on providing necessary information about the strategic selection of FTZ for setting up a new manufacturing facility for a global security systems company in China. To know more about China sourcing visit: https://www.dragonsourcing.com/china-sourcing-company/
Substation Project Case Study by Dragon SourcingJohn William
Here is a Strategic Sourcing case study by Dragon Sourcing on AIS, GIS, and Transformer in substations for the year 2019 covering China. For details contact: www.dragonsourcing.com
Strategic Sourcing Case Study-White Goods sourcing in China, Turkey, VietnamJohn William
This case study focuses on sourcing white goods in China, Turkey, Vietnam. These countries very popular to source white products. To get more information visit: http://www.dragonsourcing.com/vietnam-sourcing/
Strategic Selection for setting up a new manufacturing facility for a global ...John William
Making a strategy for setting up a new manufacturing facility in Asia for a global security systems is very important. To get more details visit: http://www.dragonsourcing.com/asia-sourcing/
Global Sourcing Case Study (Chinese Appliances Market)John William
This case study presented by Dragon Sourcing limited is about the key factors influencing the global sourcing procedure in Appliances market, to know more visit: http://www.dragonsourcing.com/
MBA in Shipping & Logistics with 3 years experience in Trade Compliance & Cu...Anoop Sharma
MBA in Shipping & Logistics with 3 years experience in Trade Compliance & Customs in Automotive Industry. HTS Codes, FTA Analysis, ECCN Codes, Import duties, Framing trade compliance policies are prime expertises.
Vietnam Case study for Commercial Automotive PartsJohn William
You can choose Vietnam to outsource commercial automotive parts. In present scenario Vietnam could be one of your best choice for sourcing activities. To know more visit: http://www.dragonsourcing.com/vietnam-sourcing/
Strategic Sourcing Case Study – Wind Turbine IndustryJohn William
Here is a case study on strategic sourcing of a wind turbine industry in China and India. To know more about China and India sourcing visit: http://www.dragonsourcing.com/india-sourcing/
FAN Induction Motors Sourcing Project Case Study by Dragon Sourcing John William
Here is a case study by Dragon Sourcing on FAN Induction Motors Sourcing Project from the Electrical Components category of Consumer Goods sector for the year 2014 covering China, India, Indonesia, Malaysia, South Korea, Thailand, Turkey, Vietnam. For details contact: www.dragonsourcing.com
Global Sourcing Case study in Appliances MarketDragon Sourcing
This market survey identifies and highlights the new competitive suppliers, 5 major spend categories in the selected sourcing countries.
For more information, please visit: www.dragonsourcing.com/
Strategic Selection of FTZ for setting up a new manufacturing facility for a ...John William
This case study focuses on providing necessary information about the strategic selection of FTZ for setting up a new manufacturing facility for a global security systems company in China. To know more about China sourcing visit: https://www.dragonsourcing.com/china-sourcing-company/
China Case Study MRO Electrical Spare PartsJohn William
Generating savings, creating momentum and training client resources for low value high consumable products. Know more here: https://www.dragonsourcing.com/china-sourcing-company/
Strategic Sourcing Case Study on Aluminum Industry by Dragon SourcingJohn William
Here is a case study by Dragon Sourcing on strategic sourcing case study on Aluminum Industry from industrial product sector for the year 2018 covering China. For details contact: www.dragonsourcing.com
Know the various facts in hat sourcing.John William
Hat sourcing involves to find and engage with the people who are planning to avail procurement services for their business in major countries like China, Vietnam, India, Bangladesh, Turkey . To get more information visit: http://www.dragonsourcing.com/services/procurement-outsourcing/
This case study focuses providing necessary information about the category demand analysis of hat sourcing in China, Vietnam, India, Bangladesh, Turkey. To get more insights visit: https://www.dragonsourcing.com/turkey-procurement/
Case Study - Demand analysis of Aluminum die castingJohn William
Here this case study focuses on providing necessary information about demand analysis of aluminum die casting. Product: meat mincer in aluminum, heating block in aluminum. Get more insights here: https://www.dragonsourcing.com/
Identify list of potential current and new potential suppliers based in China to include in the RFI/RFP process by leveraging, current Dragon Sourcing suppliers database, the web, external databases and various networks of experts.
Vietnam Case study for Commercial AutomotiveJohn William
One of the European leading manufacturers and distributors of automotive Breaking and Transmission systems. The objective of identifying and qualifying new competitive suppliers in Vietnam. Get more insights here: https://www.dragonsourcing.com/vietnam-sourcing/
Global nuclear industry leader.The company is also one of the world leaders in renewable energies: Wind, solar, bioenergies, hydrogen and storage
Commercial presence in more than 100 countries with a total of around 50,000 employees worldwide.
Door Hardware Sourcing Case Study by Dragon SourcingJohn William
Here is a case study by Dragon Sourcing on Door Hardware Sourcing from the Consumer Goods sector for the year 2018 covering China and India. For details contact: www.dragonsourcing.com
Cotton Bags for Luxury Retail Brand Case StudyJohn William
Here is a case study by Dragon Sourcing on Nutrition Product Manufacturers Sourcing from the Textile category of Retail sector for the year 2019 covering India. For details contact: www.dragonsourcing.com
Dragon Sourcing’s objective is to help our clients create significant and sustainable value (cost, quality and service) in the procurement of their goods and services by leveraging the capabilities of LCC’s supply markets in Asia and Latin America.
Interested in identifying and qualifying new potential competitive suppliers in China, specialized in the manufacturing of shopping bags, wood flooring, fixture, furniture and leaflet printing.
Interested in identifying and qualifying new potential competitive suppliers in China, Vietnam and India specialised in the manufacturing of duvet cover in cotton and polyester, light fittings for hotel, carpets in wool and cotton and crockery in porcelain.
Our Client is an European company specialized in pipes
and fittings for construction and engineering.
The Client wanted to better understand the current market
of Ductile Pipes in China and find new suppliers at lower
costs.
The Go-West policies are a consequence of China focus on eastern development since 1978. The disparities between Western and eastern China should be regulated to ensure China’s harmonized economic development.
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32. 2011 Dragon Sourcing. All rights reserved. 32
We surveyed 13 GMs of Western companies with factories in Shenzhen or
Xiamen to assess convenience criteria and complete unavailable information
37 General Managers
from Western
companies with a factory
located either in
Shenzhen or Xiamen
invited to respond to the
questionnaire through a
phone interview
23 questions survey
covering:
• Road Infrastructure
• Safety
• Local Authorities
• Utilities supply
• Labor
• 13 participants to the
survey
• 7 from Shenzhen
• 6 from Xiamen
• 30-45 minutes phone
interview with each of
them for comments on
their answers
• Statistical assessment
of soft criteria through
the satisfaction level of
people in these 2
locations
• Complement when no
available information
33. 2011 Dragon Sourcing. All rights reserved. 33
Road Infrastructure & Traffic
Questions SHENZEN - 63% XIAMEN – 82%
Well served area (highways, access to the sea port)
Road traffic jams penalize company activity
Personally bothered by traffic jams
Average
Comments
• Congested highways, too much truck
traffic
• Truck drivers penalized for their deliveries
• Infrastructure hasn't been developed to
support the actual growth of activity
• More and more private cars.
Currently a lot of works cause
additional problem, but they will
improve the traffic in the longer
term
• New bridge + tunnel under
construction
Very Good Good Fair Bad Very Bad
34. 2011 Dragon Sourcing. All rights reserved. 34
Safety
Questions SHENZEN – 88% XIAMEN – 94%
Area safe for the workers
Area safe for the Management team
Area safe for the company
Average
Comments
• Fuyong seems to be an area to avoid:
50+ attacks (factory & personnel) over
last 3 year. Only 1 policeman for 10.000
people in factory village
• Attacks are common on the streets;
slightly safer for Westerners, but we also
heard about several bad stories
• 2 km between factory and downtown
Pingfu. People sometimes robbed on their
way
• Tongan less safe than other
districts, poor people, operators
sometimes locked on their way
home (2 shifts either starting at
6:00 or finishing at 23:30)
• Haicang is safer with ~1 incident
per year (snatching)
• Xiamen island should be
considered as one of the safest
area (controlled access through the
2 bridges, with a lot of cameras…)
Very Good Good Fair Bad Very Bad
35. 2011 Dragon Sourcing. All rights reserved. 35
Local Authorities - scores
Questions SHENZEN – 72% XIAMEN – 78%
Local Administration offers subsidies to encourage
foreign investments
No
Basis
Frequency of the visits by the local Authorities
Local Administration overall supportive of the
companies
Special treatment from the local authorities for the
foreign companies
Local authorities level of corruption
No
Answer
Local authorities priority given to enforcing SCR
compliance
Easiness of getting of company license
Local administration overall efficiency (e.g.,customs)
Average
Comments • See next page • See next page
Very Good Good Fair Bad Very Bad
36. 2011 Dragon Sourcing. All rights reserved. 36
Local Authorities - comments
SHENZEN – 72% XIAMEN – 78%
• In Baoan district, local authorities provided a building in Gongmin zone as well as
helped to hire somebody to take care of all government related issues. Always
come with solution in case of problem, very helpful. Very friendly people, new
generation 30-40 years old, usually well educated. Corruption definitely not
eliminated. Highest efficiency among Chinese cities.
• Some subsidies for companies with a lot of R&D
• Until 2005 some local companies were not paying overtime; this is now enforced
by local govt. But housing funds, medical insurance… not enforced.
• PR fees can help lower the level of SCR compliance
• Very open and very easy to deal with customs office in some cases, very difficult in
others
• Customs, tax authorities, safety bureau not here to be helpful. They follow the
rules without interpretation. Very black & white
• They watch at us to obey the local regulation more than the local companies. No
problem because laws are reasonable
• Local authorities visit our factory only when they want a free lunch or a pay-off
• Tolerable amount of money, but very frequent. 2-3 times more frequent than in
Taiwan. Annual total also higher than in Taiwan, but not 2-3 times higher
• Corruption not eliminated, but considered not to be any worse that anywhere else
by some. Others consider that it's worse than in Guanzhou, better than North
China (Shandong)
• Main corruption issue with Customs; can easily block import or export… impossible
to avoid. You need good relationship with Customs. Even if you try to follow the
rules (but you can't make money if you follow the rules; you need to know what is
important) money under the table is needed to solve some issues. Except if you
are a westerner, they can be a bit more reluctant to ask… no hesitation with
Taiwanese.
• Subsidies depend on project. In an example, relocation cost were even absorbed.
• More generally, foreign investment no longer encouraged… polluting business are
even asked to move to center provinces
• Open and supportive attitude to western company. Network is important. Neither
strong support, nor strong barrier
• Foreign Invest Bureau (FIB) organize monthly meetings with GM of foreign
companies… opportunities to raise issues to the authorities. Usually good support
from FIB, especially when talking about investment
• The "large employer" companies get better support (issues related to policies).
Otherwise, operational issues (customs,…) have to be handled by the company
• New project launched last year. All authorizations obtained in 30 days! Keen not to
be an obstacle
• Usually visits 2-4 times a year, because business is changing. Authorities want to
understand the change. Or to control safety. Not bothering
• Request on environmental issue, unprofessional… not supportive, but still
threatened to close the factory
• Interested in waste handling, progress on energy, health & safety compliance
• Govt watch out quite carefully: insurances, indiv. Tax. All has to be legal
• Don't enforce limit of 36 extra hours/month, not keen to enforce labor unions
• Tough customs and strict degree of enforcement of Handbook; However, Custom
organization considered to be very efficient with eHandbook: bonded warehouse
management over internet. 24h customs clearance in case of emergency
(Otherwise only 48h)
• Another respondent ever had any trouble with customs. Has special connection
• PR funds are needed, but overall negligeable
37. 2011 Dragon Sourcing. All rights reserved. 37
Utilities supply
Questions SHENZEN – 58% XIAMEN – 97%
Electricity power shortage and control
Quality of electricity supply
Quality of water supply
Average
Comments
• In summer (8 months!), 2 days per week without
electricity. Sometimes unannounced. Companies
runs their own generators.
• Can negotiate the day of power cut; some
succeeded(!) to get it on Saturday.
• "Voluntary" day off during the week which can be
exchanged with week-end work
• Some heard that this electricity problem could be
solved by end of 2007
• No problem in Shika district which is powered by
HK
• From time to time, water shortage during 2-3 days
between April and July. Tank for water storage,
holes in the ground to pump water (not sure if
legal).
• Two power cut in 2004, no problem
since then
• In 2004, local government made a
good job to manage the issue
(information)
Very Good Good Fair Bad Very Bad