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Indeed, setting up international procurement offices (IPOs)
in low-cost country like China can bring significant up-front costs
or supply risks¡ªeven in the most diligent and careful operations,
such as:
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Limited on-the-ground resources
Limited supply management resources within local business units
Lack of local sense for supplier evaluation in different regions
Not in-time monitoring on-going quality and performance
High-cost expatriate workers
¡°Hit or miss¡± recruitment of local employees
Hundreds of languages and dialects
Distance and time factors
Varying levels of infrastructure
Varying levels of potential suppliers |
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