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Sourcing from China: Lessons from the Leaders

Global companies have been sourcing from China for years, reaping the much-publicized rewards of that activity. However, a number of them are finding China sourcing considerably more challenging than they anticipated. Constraints limiting the growth of China sourcing include internal resistance, the difficulty of retaining a sourcing team, the challenge of managing an extended supply chain, the challenge of building up a sourcing team, and cultural and language issues, among many others. A recent BCG study of 15 global companies with sourcing offices in China revealed that these companies are experiencing mixed results. However, they are also devising effective ways to address the significant challenges they are encountering.

The authors of this report outline both the challenges that companies are facing in their China sourcing and the best practices that distinguish the more successful companies from their peers.

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Jim Hemerling is a senior partner and managing director in the San Francisco office of The Boston Consulting Group.

David Lee is a partner and managing director  in the firm’s Shanghai office.

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