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Doing Business in China Yields Savings

  • Friday, 16th August 2002
  • Reading time: about 2 minutes

BChinaB, the plastics outsourcing firm in the US, has been lauded by MarineEast, one of the country’s most innovative manufacturers of fiberglass boat components and accessories, for saving the company significant amounts of money and time to market by outsourcing production to China.

As a full-service partner, BChinaB negotiated the terms, navigated the difficult upstream distribution scenarios and facilitated the often-difficult cross-cultural communications. With headquarters in both New York and Ningbo, and its relationships with more than 1,000 suppliers, BChinaB not only made doing business in China easy, it saved MarineEast more than 50% over previous production costs and delivered the product well over a month ahead of expectations.

“”We were absolutely delighted with our experience with BChinaB,”” said Dave Thompson, founder of MarineEast. “”This organization was a tremendous help to a small company like ours that has never dealt overseas before.”” Thompson had struggled with the inefficiencies and prohibitive costs of new product testing and sampling. He relied solely on U.S. vendors for sample production, believing that limited quantities and cross-cultural differences would make outsourcing these projects to China impractical.

“”China is opening up its markets to the U.S. at a fast pace,”” Xin reports. “”But China’s ability to produce highly competitive products in terms of quality is the first half of the equation.”” The key to success in dealing with China, Xin says, lies in negotiating distribution channels (which Xin calls “”China’s lingering weak spot””), language barriers, supply chain issues, cultural differences and other potential deal-breakers.

BChinaB has established relationships with more than 1,000 molders, material suppliers and tool & die shops in Mainland China. The firm manages every aspect of outsourcing a supply chain: from raw material purchase to tooling, production, and assembly, assuring quality and on-time delivery throughout.

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