Establishing a global sourcing team in a foreign market is a complex endeavor that requires expertise and strategic planning. For a European retailer aiming to enhance its sourcing capabilities in China, JetSpeed provided the necessary support to build a dedicated team without having a legal entity in the country. Our structured approach ensured legal compliance, efficient operations, and strong supplier relationships, enabling our client to optimize product quality, cost-efficiency, and supply chain reliability.
01. Challenge
A European retailer sought to establish a dedicated global sourcing team in China to manage their product sourcing activities for stores across Europe. There were many challenges that came along the way. We helped the client identify and overcome the following key challenges:
- Legal and Compliance: Operating without a legal entity in China while ensuring compliance with local laws and regulations posed a significant challenge.
- Vendor Selection: Identifying reliable, quality-conscious suppliers in a vast and diverse market was critical to the success of the sourcing operations.
- Supply Chain Management: Ensuring smooth logistics and timely delivery of goods from China to Europe required careful coordination.
- Cultural and Communication Barriers: Overcoming cultural differences and language barriers in conducting business with Chinese suppliers was essential for building strong relationships and ensuring effective collaboration.
02. Solution
JetSpeed engaged in a strategically structured approach to help the client establish and manage their dedicated global sourcing team in China, focusing on efficient operations and effective collaboration aiding with strategic planning and setup, legal compliance framework, vendor selection and relationship management, contracting and negotiations, quality assurance and control, logistics and supply chain oversight, and communication and team development.
90
Efficiency
100
Compliance
90
Supplier Relationship Management
100
Quality Assurance
Our structured approach ensured that all aspects of the client’s sourcing needs were met, enabling them to establish a strong and efficient presence in the Chinese market without needing a local entity.
03. Results
Through meticulous planning and execution, the client successfully established their dedicated global sourcing team in China. They overcame initial challenges related to legal compliance, vendor selection, and supply chain management, positioning themselves as a competitive player in the European retail market.
- Effective Sourcing Operations: The client achieved significant improvements in sourcing efficiency, product quality, and cost-effectiveness.
- Legal Compliance Maintained: The client operated in full compliance with Chinese laws and regulations despite not having a legal entity in the country.
- Robust Supplier Relationships: The client built strong relationships with reliable suppliers, ensuring consistent quality and timely delivery of products.
- Optimized Supply Chain: The client effectively managed logistics and supply chain operations, minimizing lead times and ensuring smooth delivery of goods.
JetSpeed’s strategic approach and local expertise enabled the client to focus on expanding their product offerings while we managed the complexities of sourcing in China, ensuring a successful and efficient operation.
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