Many savvy executives of North American manufacturing companies have established a plant or key supplier relationships in China (and elsewhere in Asia). After making significant investments in these business operations, it’s essential to achieve success and a strong ROI.
The problem is, it’s not easy to know how effective and efficient those Asian operations are. Business factors that are not obvious, along with a changing business environment in Asia, could be keeping financial returns significantly lower than they should be. That’s often true whether it’s a company-owned operation, a joint venture, or supplier relationship.
For example, here are some common uncertainties:
- Is the local operation as profitable as it should be? Achieving the targeted R.O.I.?
- Are vendors consistently delivering promised quality standards and following the agreed practices – even when there’s no one representing the home office on site to oversee and audit?
- Is the current sourcing arrangement providing the best available cost and performance?
- Could launches of new products or new businesses be poorly positioned to succeed?
- How vulnerable to industrial espionage might the operations be?
- Is the local management of your business following your corporate business plan?
Distance, language, culture differences, and other barriers make it tricky to know what’s really going on – or to drive corrective action when an issue arises.
There are real limits to what can be accomplished by typical alternatives for assessing situations and making improvements:
- Trips to Asia by the CEO or company personnel to assess and try to correct things, or
- Relying on expatriate staff that may not be sufficiently skilled and culturally astute, or
- Relying on local management that may not understand the Western company’s culture and expectations, or
- Assuming all’s well and doing nothing until there’s a major crisis
If you have similar issues or concerns, now you have an alternative: Ops-Asia. We can help you achieve better Asian operations business results.