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Case
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Reference no. 111-054-1
Published by: Asia Case Research Centre, The University of Hong Kong
Published in: 2011

Abstract

In 2004, US-based China Sourcing Group, which specialises in premium and gift products, established a sourcing office in Shanghai. The Shanghai office was responsible for sourcing vendors not only in China but also southern Asia. It played a major role in quadrupling China Sourcing Group’s revenues over the next four years. Despite its contribution to the Group, the Shanghai office faced a major issue of frequent late deliveries, especially for new products that were developed from scratch. In 2009, as the Shanghai management team reviewed the performance of the sourcing office, it decided that something had to be done to improve the punctuality of its deliveries. What should the Shanghai office do to improve the situation?
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Abstract

In 2004, US-based China Sourcing Group, which specialises in premium and gift products, established a sourcing office in Shanghai. The Shanghai office was responsible for sourcing vendors not only in China but also southern Asia. It played a major role in quadrupling China Sourcing Group’s revenues over the next four years. Despite its contribution to the Group, the Shanghai office faced a major issue of frequent late deliveries, especially for new products that were developed from scratch. In 2009, as the Shanghai management team reviewed the performance of the sourcing office, it decided that something had to be done to improve the punctuality of its deliveries. What should the Shanghai office do to improve the situation?

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