Abstract
Sourcing in China started with low-tech products but it has evolved beyond that, says Jim Hemerling, a senior vice president in The Boston Consulting Group's Shanghai office. "Now, in addition to traditional products, another huge area is consumer electronics. I believe the next big wave will be industrial goods, with companies like ITT, Siemens, Honeywell and ABB leading the way." (http://knowledge.wharton.upenn.edu/index.cfm?fa=printArticle&ID=1166) We now realize how important it could be for Foxtel to source from China. After receiving bids from 3 different suppliers namely Legend, Great Wall and Panda, we compared them with the prices offered by our suppliers. We challenged our current supplier's bid with the total cost of ownership (TCO) of the Chinese suppliers. The TCO takes into account all the associated costs of dealing with a supplier. After comparing the world-wide costs per kit among various suppliers, we found that Legend Supplier provides the best potential for cost savings.
