The China Opportunity

A Classic Risk Reward Paradigm

China 's increasing integration with the global economy has contributed to sustained growth in international trade. Even though the advantages of low labor costs are eroding as Chinese workers and consumers command higher wages, global manufacturers are still descending in droves to reap the potential rewards of offshore manufacturing.

Businesses must fully consider the risks and challenges involved. Doing business in China involves careful, detailed planning. Which region and locale to choose? Is a wholly owned subsidiary or joint partnership the best form of business? What is the best structure for management and oversight? How will intellectual property be protected? The confusing maze of governmental bureaucracy, rudimentary infrastructure and vast cultural differences all pose hurdles to success. There are a multitude of decisions to make - and mistakes can be costly.

Once decision makers have faced the issues and made the commitment to invest in China, it is critical to ensure that the right systems and processes are in place to run day-to-day operations smoothly and maintain visibility of the business. Enterprise systems help integrate information across the company and provide real-time visibility that allows greater executive control and reduces investment risk. Enterprise applications not only automate manufacturing processes, but also can help overcome major business issues such as control, compliance and localization.

Manufacturing in China is growing in both size and sophistication, with many world-class facilities being established over recent years. To succeed in the competitive global market, added value, efficient production and regulatory compliance are becoming the core objectives for more and more China-based manufacturers.

QAD has been established in China 's manufacturing industry since 1999, and is increasingly focused on this market. QAD is recognized for its passionate commitment to the global manufacturing industry. In China, its strong local research and development (R&D) presence, local training and support organization and applications localized for language and compliance demonstrate the extension of that passion and commitment to manufacturing in China.

A partner of choice for global manufacturers choosing to operate in this challenging - and exciting - emerging market, QAD, in partnership with Strategic Information Group (SIG), has outlined six critical steps to making an ERP system a cornerstone of successful expansion into China.

1. Partnering with an experienced local provider
2. Keeping things simple
3. A viable employee training plan
4. Ensuring local support
5. Understanding accounting and industry localizations
6. Supporting automation and collaboration