Personnally, I think the operation management department is the most important department for the success of your company in China. It may not look the sexiest as Finance and Sales & Marketing but it is essential.
You can have a very good product but if you cannot deliver it on time, it is useless. Nobody will buy it. So here are my tips for an efficient operation management department:
- Supply chain shall be put at the center of your strategy for success in China;
- Do not promise (Time delivery) if you cannot fulfill;
- Chinese decision process can be very long but when it is taken shall be implemented immediately. Chinese bosses will often choose not only the cheapest but also the fastest.
- Select a range of products you want to sell in China but not the all spectrum of products in your catalogue;
- Establish as soon as possible safety stock;
- Set up clear processes in your logistics and purchasing department in coordination with the general management, the finance and the sales department;
- Install asap an ERP system;
- Chinese companies value price, speed and service quality. Be stronger than your competitors on these three aspects;
- Train constantly your staff and make internal audits especially in the purchasing department;
- Bring Foreign expertise at the beginning of your new venture in China and make close connections with the logistics deprtament in your HQ;
- Keep close contacts with China customs. Laws & regulations change very often.
Comments