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Post by Noel Chan on May 30, 2014 2:00:36 GMT -6
The average annual salary (exclusive of bonus and benefits) for a US-based Purchasing Manager is USD 90,558. But for purchasing managers in China, even adding bonus, mandatory benefits, dorm/housing and meal allowances, the direct labor cost is still less than USD 15,000 per year. For an experienced senior Chinese manager, they earn around USD 30,000 a year but the cost is still a fraction of the amount needed to engage professional staff in developed economies, such as North America, the EU, and Australia/NZ. This means outsourcing the supply chain management function to a lower-cost country could benefit not only from physical proximity to supply base, but also significantly reduced HR cost. However, setting up an office and managing a team in China is not easy as there are cultural, legal and other barriers. If China-based sourcing agency is used instead, there are some risks - lack of professionalism and transparency, too much over-selling and under-delivery. Some agents may receive secret commissions from the factory, while claiming themselves the ""buyer representatives"". Full article at Tradegood's Viewpoints
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Post by unlawflcombatnt on May 30, 2014 16:45:10 GMT -6
Outsourcing even more jobs to China is just what this country does NOT need.
What the US needs is a stiff Tariff system, to offset the labor cost advantage of having work done in China.
Our forefathers understood this concept over 200 years ago.
But now, our contemporary Economic "geniuses" seem to have forgotten all about this--the importance of making things in your own country so that the cost of production goes into wages of workers who can then buy that production.
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