After successfully conquering the manufacturing markets of several countries, China is now gearing up for a much larger game plan which is called ‘Made in China by 2025’. China is already a superpower by investing in every sector of business including technology, networks, education, and infrastructure and now embarking on the path of the next phase of the digital revolution waiting to happen.

The game plan 2025 strategy was announced in the year 2015 with the intention to boost the manufacturing revolution and it includes areas like smart appliances and high-quality consumer electronic goods. The motivation behind this effort is to make China from a manufacturing house to a manufacturing giant in 10 years down the line.

The transition of China manufacturing from phase 2.0 to phase 4.2

The era of low-cost development is going to end in the country and now it is making way to a high tech development. China is in the process of raising the bar and it will bring a vehement change in their products and services. The country is making serious efforts to change its original copycat image and this led to the coming of many more changes in the process.

This transition phase is also called the 4.2 phase which is a shift from the 2.0 phase when China was emerging as an economic power. This 4.2 development phase is what represents the country’s future. In this phase of industrial development, the emphasis will be on healthcare, artificial intelligence, logistics, intelligent finance, public services, transportation, education and this will help the country to cater to the ever demanding consumer market both at domestic level and in overseas. This will be the cornerstone of the next big phase of development in China.

China wants to be highly competitive by the time around 2035 through their efforts in increasing the efficiency in production and innovation.

What statistics claim?

According to World Bank reports, manufacturing in China covers as much as 40 percent of total GDP in 2017. China is expected to maintain this trend by investing in the manufacturing sector starting in 2025. At the same time, it is also noteworthy to see that its investments in other industrial spheres also proved very successful.

According to reports released by GSMA, the highest regulatory body that controls the interests of mobile network operations globally, China is aiming to become a superpower to enhance production activities and building efficiencies by organizing and introducing automation into manufacturing processes.

As this policy is emanated from the government, the general opinion is that China will be unstoppable in the coming years. The country is expected to occupy 4.1 billion of the world’s industry in IoT in 2025 as GSMA predicts.

Investing in infrastructures, Narrowband IoT’

China has always been showing an inclination towards investing in the infrastructure sector with the aim of a secured future. A leading global management consulting and professional firm ACCENTURE has stated that China’s infrastructural investment could contribute $ 196 billion to the cumulative growth of GDP in the manufacturing sector alone for the next 15 years.

When it comes to network deployment, the country is aiming to integrate 600 devices to what is called ‘Narrowband IoT’ by the year 2020. China favors this technology because of various advantages associated with it such as broader rang facility, low power consumption, enhanced network security, and reliability etc. It is already in the process of implementing this digital infrastructural renovation projects in order to accomplish its objectives.

Laying the foundations for future

These faster network deployments will lay the foundation of the country’s future success by allowing the consumer and industry users to enjoy the benefits by using these connected solutions.

China has matured over the years by learning from its mistakes in the past. Now it has diverted its energy towards investing in manufacturing products to the international standard rather than only focusing on the Chinese standard.

China is also investing in smart city projects introducing several advanced solutions to solve real-world problems such as creating public awareness about conservation of energy and Municipal Corporation etc. The country has already started installing smart water meters in 2017 which has been a success.

Narrowband IoT networks have already been installed in approximately 30 Chinese cities. The future global city will feature a smart environment with the assimilation of technologies such as the internet of things, big data, artificial intelligence, and renewable energy methods.

Software development

The country has a flourishing developer community and it is attracting more and more global talents for the development of software because without software, smart devices will be of no use. Many such IoT startups have come into being in recent years to encourage the rise of developers. According to reports provided by Apple, it has more than 2 million IoS developers in China and a great number of IoT solutions providers.

Final insight

So, the country’s intensive focus on the infrastructure of network and technology, innovation-friendly attitude and a growing community of highly talented and experienced developers enable it to rapidly moving towards a giant superpower. China manufacturing has come a long way as you have seen and now it has entered into a matured phase and a vigorous expansion plan has been formulated to achieve the dream of becoming a world power in every sphere of business.

In terms of expenditure in research and development sector, the plan 2025 has offered assistance to ten different industries which include the IT sector, hi-tech ships, and eco-friendly cars. So these industries will get preferential treatment over others and will be the trendsetters in the coming years.

 

Don’t Miss

• How To Get Smart Strategic Sourcing Solution In USA
• An Overview of the Sourcing & Procurement Strategy Adopted By Modern Organizations
• Best Sourcing & Procurement Platform in USA

Small businesses in the USA are increasingly using technology across disciplines to grow, attract top talents, and sell their respective products and services. Thus the need for strategic sourcing solutions is also growing day by day. These 3 S implies an approach to supply chain management that formalizes the way in which the information is gathered, transferred and used for the benefit of an organization. Through this, an organization can leverage its consolidated purchasing power to find the best possible values in the marketplace. Strategic sourcing requires an overall analysis of an organization such as what it buys, who are its target customers, etc. and on that basis, a strategy is made to draw the benefit of an organization. Don’t confuse strategic sourcing with conventional sourcing. Strategic sourcing differs from conventional purchasing as it puts emphasis on the entire life-cycle of a product and not just its initial purchase price. Strategic sourcing also helps the procurement professionals to fulfill their dual roles for supply and cost management of the organization. Thus, it is very advantageous for a company to get strategic sourcing as a proactive, information-guided approach to procurement of a reactionary or fulfillment behavior of an organization.

Strategic sourcing software modules

For more unified sourcing management, agencies employ various strategic sourcing modules. These modules facilitate the approach more, by standardizing sourcing requirements and providing users with federated data technology. It helps in sharing information about products, markets, business needs, etc with the client organization in real time. Different organizations have different procurement software and are mostly sold within the enterprise resource planning system only. Sourcing management software makes it quick and easy to get the best market price for all goods and services rendered by an organization, removes barriers between sourcing and purchasing to run compliant process efficiently, such as the ability to score on specific attributes and weight scores, etc.

Benefits of sourcing management

While strategic sourcing is widely practiced in large and small scale organizations, fewer small and mid-size operators have discovered its value and explored how to implement this strategy in their own organizations. It’s not that large operators are the only ones who can stage and sustain a strategic sourcing initiative small organizations also entertain the benefits of it. Strategic solutions help an organization in the following ways:

Reduce and control procurement costs: By studying data and other negotiable capabilities of an organization, sourcing management helps in reducing and controlling procurement costs and increase the agility. It helps in eliminating the business’s overhead burden required to manage the suppliers’ lifecycle, analyze and access the information and their performance in the marketplace.

Maximize the value of every dollar of spend: An estimate of 70% of potential procurement can be achieved through strategic sourcing. In 2005, the government launched the Federal Strategic Sourcing Initiative (FSSI), to offer federal agencies a way to purchase Maintenance, Repair and Operations (MRO) equipment and supplies at below-current government market prices. This solution helps small business to streamlines product offerings and reducing the need for standalone agency contracts.

Streamline procurement options: Sourcing management helps in optimizing procurement processes and thereby maintaining fast and focused functions to run. This is because, without a mature and generalize strategic procurement function to influence, control and report organizational spending, it is impossible for an organization or a business to fully leverage its total purchasing power and create the value and service levels that are required from third party suppliers.

Build strong and trustworthy relations with existing and new vendors: Through detailed studies on the products, their existing market reputations and delivering the information in real time, it is very easy for an organization to build a strong a trustworthy relationship with the existing and new vendors. It also helps to increase and expand your business smoothly in a shorter period of time.

Processes involved with sourcing management

There are a number of processes through which a perfect strategic process should go. These processes are not only necessary but also make the management smooth and authentic.

Step 1: Determining the product: Understanding everything about the product is the first step in the strategic sourcing process. This means defining the category, the current quantity used, types and sizes, the end users of the product, are the processes used and involved in the supply chain, etc in the well-documented form.

Step 2: Analyzing the supply market: Identification of potential new global and local suppliers is the second important process for strategic sourcing. It is necessary as the study of cost components of the product or service helps in the suppliers’ marketplace to manage the risks and opportunities. Key raw material and other variables such as labor and transportation pricing and calculations are also important suppliers’ cost elements and are done in this phase only.

Step 3: Strategizing: Based on the above studies, there comes the need for strategizing the idea such as the cost, review management, supply prices, etc. Sometimes risks and uncertainty also involved business and strategizing through sourcing will definitely help you in deciding where to buy in order to minimize risk and costs thereby. Usually, a cross-functional project team works to study the dependency on real alternative suppliers, the competitiveness of the supplier in the marketplace and most importantly, whether the users are open for new suppliers of the product or not.

Step 4: Determining the sourcing process: The fourth important step necessary to determine what sourcing process one should carry for the procurement solution. This includes product and service specifications, delivery and service requirements, pricing breakdown, and other legal and financial terms and conditions, etc.

Step 5: Negotiating and selecting suppliers: A good strategic sourcing strategy conducts multiple rounds of negotiations to shortlist the suppliers. The final selection process is usually done by the team on the basis whether the supplier can provide maximum return or not and then signed off as per the approval process.

Step 6: Implementation and integration: After completion of all the above steps, then the phase of implementation takes place. The implementation programs sometimes vary depending on the degree of changes made throughout the process and then help to simplify the end result from the product.

Step 7: Tracking the results: Finally there comes benchmarking the end results that is after executing the strategy, it is essential to track whether it is beneficial for an organization or it needs to be modified more.

Where to get an ideal sourcing management service in the USA

Hiring a sourcing agency for a complete procurement solution makes it way smoother and hassle-free to run the business profitably. But how will you find an ideal one? To get the best and genuine sourcing application, you need to see the systematic and scalable means for the organization to manage the full sourcing process in a well-maintained manner. This may include contract management, supplier performance management tools, etc. Being a Sourcing agency, we will help you to get the right supplier by proper documentation and contracts and always follow the law and order of our as well as other countries.

 

Don’t Miss

• The 100 Top Most Selling Product On Amazon, Here’s How To Find Them
• An Overview of the Sourcing & Procurement Strategy Adopted By Modern Organizations
• Best Sourcing & Procurement Platform in USA

Sourcing and procurement is an inevitable part of the global supply chain system. Sourcing is the process of finding or identifying a source from where an individual business will import its goods and services. It forms a part of the procurement process which pertains to the acquiring of goods and services in a less expensive manner. Sourcing involves analyzing and hiring independent businesses to supply products and services to other businesses. The procurement system refers to the process of obtaining those goods and services for a particular business. As businesses are becoming more and more focusing on their niche areas, it becomes imperative for organizations to take help of this Sourcing & Procurement strategy to enjoy a competitive advantage in the market.

It is a business strategy that if an individual business cannot do certain tasks efficiently then there is no harm taking help from an overseas manufacturer who can do the same task in a cost-effective way.

Various business firms always look out for options on how to maximize their production by reducing the overhead cost of business. They are in search of options which can add value to their products and services. If they find a company or manufacturer which can add value to their products they will outsource those companies to reap business profits.

Almost all the organizations do outsourcing at some stages of their business. Some companies even resort to product outsourcing their entire line of products and services to a third party provider.

The genesis

The trend of Sourcing & Procurement became prevalent in the decades of ’90s when organizations started outsourcing their lots of services from overseas suppliers. China emerged as the leading supplier of Sourcing & Procurement for companies across the world.

The primary goal of outsourcing was to minimize the growing production cost and to concentrate on the niche areas and to deliver the best. This trend received wide popularity and as the production cost is lower in China and it helped various businesses to put their feet in their respective markets. Business from all segments including the clothing, drug slowly adopted this trend to experience a huge success.

Strategic sourcing

Sourcing & Procurement plays a crucial role in streamlining the cost structure and competitiveness of small and large scale businesses. It involves evaluating the high-end purchases and developing long term ties with the suppliers which are capable of providing top class products and services at a much lower cost.

The need of Sourcing & Procurement

Organizations are variously challenged at different stages of their business. They deal with the rising level of competition, volatile market place, changing business models, the pressure to reduce the cost, fluctuating price and the low level of supply of raw materials. As a response to these problems, organizations often look for outsourcing options to decrease their overall production cost by exploring a new partnership in business, innovating new products and services. They opt for a total overhauling of their organizational structure to be able to respond in a better manner to the modern day market demands. Procurement plays a key role in all these activities and it is a standard business method, a recognized practice.

What statistics say about the recent trend of Sourcing & Procurement in the USA?

According to the findings of the renowned global procurement officer survey 2018, the cost is still dominated to be the top priority of the procurement leaders.

• It is estimated that 78 percent of focus is rested on the reduction of cost. Further, it reveals that as growth is evident when it comes to saving performance.
• From 2017 to 2018, the saving from procurement has grown from 58 percent to 61 percent in the year 2018.
• This study also claimed that around 33 percent of procurement leaders believe that the coming of the digital procurement strategy will help them to better achieve their long term objectives and organizational values.
• This study also reveals that organizations highly focus on technical procurement skills rather than any other areas. As much as 36 percent of procurement leaders consider their procurement function is very effective and think that it is highly needed for their internal business operations. They feel that procurement provides a true value to their business.
• Around 45 percent of procurement leaders feel that their team if efficient to deliver on their procurement strategy which is a great advancement from the year 2017 when it was just 27 percent.

This is a reliable survey as it has created a benchmark in the field of procurement by taking into consideration of different challenges faced by procurement such as the changing dynamics of market, value and collaboration, leadership and talents and digital procurement method.

Digital procurement process or cloud computing

Cloud computing or digital procurement emerges as the most popular way of doing business. It is a well-established business practice in the United States. It refers to the process of receiving the in house IT services over the internet from a distant location rather than managing then independently with the in house team. It enable businesses to manage their operations from any time any location in the world.

In the field of procurement, there is a growing trend of adopting cloud computing services among both the public and private sectors.

• If reports are to be believed, the spending on public cloud offerings is expected to see a growth of US$67 billion in 2015 to US$162 billion in 2020.
• The Federal government’s spending is also expected to surpass US$10 billion by the year 2023.

The social and economic impact of sourcing and procurement in America

This trend of offshore Sourcing & Procurement is growing high in the United States and it influenced all the manufacturing and other industrial segments. It gives rise to a serious debate about the impact it has created on the society and the economy as a whole. Many individuals believe it has taken away jobs from the domestic market and causes a decline in the standard of living. While a section of proponents welcome this trend saying that it has offered great benefit to society by increasing the overall revenue of the businesses.

China as the leader in sourcing and procurement for businesses 

A huge number of businesses in America rely on China as their sourcing and procurement base and try to become a leader in the market place. China is viewed as the low-cost manufacturing hub as the production cost is quite low there. Automobiles, electronics and all other sectors of businesses are heavily relying on China Manufacturers to procure their materials.

Future of Sourcing & Procurement

The future of the Sourcing & Procurement industry is prosperous both from the point of view of a profession and as a business process. In the future, the whole supply chain industry will undergo many changes and digital technology will completely dominate the procurement process.

Many years ago, sourcing and global procurement was a foreign concept. But there are a lot of changes have come in the way that businesses are conducted nowadays. To deliver a sustainable business and reducing the cost in operations, global organizations are fast adopting this method for success.

Due to technological advancement, better accessibility to remote marketplaces is possible now and this is further contributed to the fact that those sourcing companies are no longer in dark. All the strategies are adopted to prevent any risk associated with the practice of sourcing and procurement.

Final insight

Sourcing & Procurement practices have always proved to be profitable for any business that faces tough competition. Nowadays it emerges as the top business practice among organizations. Companies who have successfully developed a strong relationship with the Chinese manufacturers adopt practices which cut down the operating cost of their business and improve the lead time. Businesses that have good knowledge about sourcing and procurement will find it easy to implement this practice and enjoy the bullion comes to their way.

 

Don’t Miss

• The 100 Top Most Selling Product On Amazon, Here’s How To Find Them
• How To Find Manufacturer & Supplier From China?
• Chinese New Year 2019- For Sourcing and Manufacturing Industry

For aspirants who want to start a business of their own by importing cheap and quality goods from China the only hurdle is to find an authentic supplier. It is difficult for anyone to find trustable producers mere by searching online. Sourcing Products from China is a brilliant idea to increase your margins in resale of Chinese products. As china has one of the most expanding mass production industry around the world and most business organizations want to import goods from there due to their high technology and extreme low prices. All you need to know is from where to source goods. Noviland is one of the most ideal spot to contact to ease off your problem by furnishing with details of the best suppliers and producers in China. Get in touch with us and we take care of the whole deal of yours with a Chinese supplier.

Get Desired Product: Our team is highly proficient in dealing with Chinese suppliers as we are familiar with the language culture, Chinese wholesale market and production units. Due to our long experience in sourcing goods from china, we have harmonic relations with more than 20 Chinese Companies and we often get to do repeat business with them as per our clients’ requirements. We ask for sample of custom made products in order to ensure the quality of desired product.

Transparent Deal: We maintain regular touch with the producer as to know the progress in production process. We keep you intimated with all the records agreements and mails that are being sent or received from the producer. Like this we keep you updated about every single detail about the production, payment and delivery.

Secure Payment: We ensure secure payment to the actual manufacturer of the products. As due to existence of so many suppliers pretending to be the manufactures we do our proper research and make payment to the right person. Due to proper research about the manufacturer before placing the order also ensures a trusted deal. With the help of video conferencing and technology checks we give a hundred percent assurance of sourcing products from an authentic manufacturer.

Timely delivery: By keeping a record of production process and estimating delivery time before hand, we ensure timely delivery of your products. You can get those delivered at your warehouse or Amazon FBA warehouses. We also share you the transit identity code so that you would be able to trace your order after shipment.

Contact Noviland for easy sourcing of products from China. Browse through our website and get the contact details.

 

Don’t Miss

• How To Find Best Clothing Manufacturers In China?
• How Outsourcing From China Helps To Grow Your Business?
• Chinese New Year 2019- For Sourcing and Manufacturing Industry

It is a current practice prevailed in the United States and internationally to outsource products from China to minimize the cost of production and enjoy profits in business. Due to the growing rise of domestic market price, there is an increasing demand among organizations for overseas manufacturing. If you are clueless about how to source from China, we as a China sourcing company will help you to understand the concept better.

So why should you prefer to outsource from China?

• Low-cost manufacturing

The overhead expense is higher with domestic manufacturers, so as their training cost and the turnover. But Chinese manufacturing costs are affordable making it suitable for various businesses.

• Low labor cost

Outsourcing your products from China will enable you to enjoy the cheap labor without providing the training to the employees. Wages are surprisingly lower in China due to their low living standard and this adds to your saving.

• Efficient production

When you are manufacturing your products in China, you will be working with state of the art factories, which are responsible for producing high quality products in industries with a huge supply. The scalability of their products is another factor that makes them popular.

• Provides better diversification

Are you trying to expand your business by offering a new line of products or capturing new markets, but cannot find it possible with the existing domestic suppliers? With the help of Chinese manufacturers, you can see your dream getting realized. You can expand your product line and sell them in international markets easily.

• Minimize the lead time in production

When you are outsourcing from a Chinese factory, there will no delay in production and the delivery of products. Because you will gets a fixed time starting from the order to the delivery of the products. But with a domestic supplier, things always get delayed and the cost increased eventually.

By ordering products at frequent intervals, you will have a consistent supply of products on time and your inventory will never go out of stock. Some of the manufacturing agencies do follow a minimum order but through proper negotiation with them, you can arrange more and more orders.

• Production efficiency

Domestic manufacturing proves expensive for startup companies because of the high labor cost and this increases the rate of failure for such companies. But with Chinese manufacturing, they could save themselves through a low labor cost and avoiding other complications.

• Expert duplication

The Copy Cat manufacturing that China adopts is of superior quality. They have the unique capability to create an exact duplicate copy of a product you are looking for with better accuracy level. So you can get high-quality duplicate products at cheap labor.

• You should learn how to negotiate with Chinese manufacturers

With the coming of several technology tools, such as email, voice message, texts, and videos etc, you can easily to communicate and negotiate with the Chinese manufacturers. Nowadays, most of the factories recruit English speaking representatives which further make the communication process easier than before.

• Finding a China sourcing company is crucial

By contacting us, you will acquire knowledge about how to source from China in a safe manner. We help you to connect with trusted factories to prevent any scam in your business. You can create high-quality products for your business by connecting to a community of manufacturing factories.

So in the present days, the success of your b2b ecommerce solution lies in outsourcing and there is no better country other than China for this.

 

Don’t Miss

• How To Find Best Clothing Manufacturers In China?
• 7 Best Selling China Manufacturing Products
• How To Find Chinese Manufacturers With Good Reviews