China Advisory Services

Industry: Retail Food Distribution

A US-based, publically traded specialty retail grocer lacked experience and visibility in working with their growing Chinese vendor system. The retailer was concerned about quality, regional business practices, transparency and possible public relations exposure. The goal of our engagement was to provide information about the general business environment in China as related to risks the company might be incurring and to submit suggestions for possible areas of improvement.

Our approach:

• Gain insight and understanding into the company's current and desired situation with regards to their Chinese suppliers
• Gain understanding of current practices and control systems
• Provide analysis of the local risks identified in the company's current sourcing practices as they related to the industry and current China market environment
• Provide gap analysis on current and desired states and what it would take to bridge those gaps in China
• Present recommendations for creating relevant and sustainable business systems for conducting business in China

Result:

• Significant changes to the company's quality audit and vendor selection system, which in turn vastly reduced risk and increased transparency.

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