Successful Technical Procurement in China

Due to sales and cost motives and ongoing globalisation, low-cost procurement markets are increasingly opened up by small and medium sized enterprises (SMEs). These enterprises’ long-term success is directly linked to their success on these procurement markets. A procurement strategy which takes local market characteristics into account and fully integrates them will lead to success. The procurement process focuses on the selection of required components and the choice, support and further development of suppliers. The following article presents the “SiLu“ project approach (Sino-German cooperation for the support and further development of suppliers). The SiLu project comprises four SMEs that came together in order to elaborate a joint procurement strategy and to implement it on the Chinese market using their concerted buying power. Besides presenting this project the article focuses on the first project phase, the methodical selection of components and the identification of adequate suppliers.