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2	Agenda Global Sourcing in Low Cost Countries - China
3	"76" 76% of participants say they are doing business in China (alternative business models). 48% say they are sourcing in China today or thinking about it 67% of participants say they are achieving price/cost reduction >16% through China Sourcing. There is potential opportunities to achieve increased price/cost reduction or revenue growth levels 76% of respondents say that they spend <30% on direct material from China. 72% of participants conduct business through a joint venture partner or have a representative office in China. There are multiple options on how you can do business in China. You must decide which works best for your firm in regards to achieving cost reduction and revenue growth opportunities
4	Work Session Expectations
5	Which of the following best describes your current level of sourcing activities in China now? None – no plans We are thinking about it We source today in China We have a joint venture in place We have foreign direct investment in China
6	What level of price/cost reduction is your company achieving through China sourcing? 5% - 10% 11% - 15% 16% - 20% 21%-29 >30%
7	China Sourcing Potentials
8	Which of the following best describes your percent of direct material spend in China? 0 - 10% 11% - 30% 31% - 50% 51% - 75% >75%
9	CHINA
10	China Facts Feeds- 20% of the world from 7% of its arable land. Provinces and Major cities have significant power. “Golden Weeks”-Three major 7 day holidays-Chinese New Year(Spring Festival),International labor and Founders Day. 56 unique ethnic groups-mostly agnostic.
11	To do business in China today, you must: Hire a Chinese firm, with powerful guanxi Just show up. . .like New Jersey Have a joint venture partner Have a “Representative Office” Bribe the officials
12	Doing Business in China After China joined the World Trade Organization (WTO), you can have; A wholly owned foreign enterprise in China (WOFE) A Joint Venture Other types
13	Finding & Keeping - Right People Maintain management consistency Be flexible and adaptable Be patient and thorough Think Win Win Be detailed People develop loyalty to the leader, not the firm People would rather work for multinational than domestic Everyone is an entrepreneur Difficult to verify past employment
14	Understanding The Culture Shoot from hip Clever children play on computer Lack cultural roots Impatient, interested in personal gain
15	Confucianism Man with the State Man with his parents and children Man with his wife Man with his siblings Man with his friends
16	Selecting the Right Supplier Know what you want Domestic sourcing is very different than export Know your costs Do you have a plan? Negotiations began yesterday
17	Automatic Spring- Insights Rapidly growing Limited LCC experience Initially no interest in China
18	Automatic Spring- Insights Before: Purchased from sources sight-unseen. Had issues with Customs. Terms were very difficult Unsure of real cost After: Quality surveys prepared of sources Face to face negotiations. Total cost-Open book format Improved delivery-no customs issues and better inventory control.
19	Automatic Spring- Insights Developing a Supply Chain, relationship with one Supplier- price increase,on top of price increase Working with Bernie and his resources, found second supplier great prices Visited, performed survey, tested product Kept the same team working with the Supplier Continued to be flexible and work the relationship Patiently looked for new supplier Were very thorough
20	Conclusion WINS! WINS! WINS! Transition Partnership Sourcing Leverage for Current Pricing Reductions Partner identification and qualification Managing the supplier Managing the freight
21	References www.chinabusinessreview.com www.chinaonline.com www.chinabulletin.com www.insidechina.com www.xinhuanet.com www.virtualchina.com New Asian Emperors….-George Haley Cowboys and Dragons-C.Lee Beyond the Chinese Face: Insights from Psycholgy-M.H.Bond Inside Chinese Business-M.J.Chen China:A New History-John Fairbanks
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23	Integrated Strategies Team Steve Trecha – President and CEO
24	Integrated Strategies Team Bernie Scibienski-Asia Pacific Sourcing Practice
25	Integrated Strategies Mission Statement
26	Integrated Strategies Core Capabilities and Strengths
27	Integrated Strategies Capabilities: Driving Client Competitive Advantage
28	Performance Results Dunn & Bradstreet Supplier Performance Rating
29	Integrated Strategies Jay Ertl - Vice President, Product Supply, Alticor Corp. (Formerly AMWAY) “With Integrated Strategies you get a firm that uses highly effective strategic sourcing, cross-functional teaming approaches to drive value. They have senior people who worked side by side with our personnel. They have valuable knowledge and experience across all dimensions of sourcing including organization cross-functional teaming, analytical approaches, commodity strategy development, design integration, supply base management, and information technology including planning, e-procurement, quality assurance, transportation and inventory. More importantly, they know how to bring it all together to deliver real world, measurable results. Alticor is truly on the pathway to global, best practice sourcing.” Robert Burch, Vice President of Order Fulfillment, Steelcase, Inc. “Steelcase is driving a total cost , service, and quality management perspective across our supply chain network. Integrated Strategies supported our internal modeling team on multiple initiatives using their advanced network modeling methodology and analysis tool- Supply Chain Scenarios. Integrated Strategies helped us take “concept to reality” with their hands-on approach, initiative management and knowledge transfer processes. The networking modeling initiatives were on schedule, within budget, and offered double digit cost savings. I would highly recommend the Integrated Strategies team.” George Hoffman - President, RSI “Integrated Strategies brought hands-on distribution knowledge and experience to the development of our Burger King distribution strategy. Working closely with a senior level team of Burger King, RSI, and franchise executives, Integrated Strategies delivered advanced distribution concepts, practical go-forward approaches, and recommendations on how to create alignment of business purpose across our system. They put us on the right distribution track and helped build a strategic road-map and distribution strategy implementation plan that we have taken to best-in-practice success.”
30	Integrated Strategies Loren L. Troyer, Director of Order Fulfillment, John Deere Commercial & Consumer Group “Integrated Strategies provided best practice insight to our needs for agile warehousing and trans-portation capabilities during our most dynamic seasonal demand period. Their senior level consultants quickly assimilated into the targeted environment, identified opportunities and provided practical, go-forward solutions to achieve customer success. Integrated Strategies met our project expectations on-time and within budget. We will definitely consider them for future supply chain projects.” John Lindseth, Vice President Global Manufacturing, Alticor Corporation “With Integrated Strategies, we found a team who could do the fundamentals, the nuts and bolts. They hit the ground running at the tactical level. They didn’t get stuck in an analytical phase. Integrated Strategies established an excellent track record and rapport from the buyer’s desk to the executive suite. Integrated Strategies has added significant value to our organization. We expect to use their strategies for years to come.” Katsuzou Mabuchi, Assistant Manager IT Procurement Strategy, Chubu Electric Company “Chubu Electric selected Integrated Strategies from many other consulting firms. Integrated Strategies proved they were the best choice for our project. In addition to knowing advanced supply chain philosophies, e-procurement strategies, and how to organize companies for successful results, they are knowledgeable and practical in their approach. They are outstanding to work with. We are very satisfied with their work.”
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