Real estate is about location, location and location. Same applies to international procurement offices (IPOs): the location has a big impact on people, taxation and logistics infrastructure that are critical to your IPO's success.
According to Ariba, approximately 48% of the word's largest corporations have established international procurement offices (IPO). This figure is typically higher in industries with history of cost pressure, such as automobile, consumer goods and electronics. In the early days, many IPOs were set up to handle tactical things like purchasing order transactions. As supply base in low cost regions matures, more and more IPOs are commissioned with strategic tasks such as supplier identification, selection, audit and performance management. This requires a high level of expertise for the IPO staff. The people you hire for your IPO will make it or break it.
Our clients often ask, how much does it cost to hire a supply chain manager, logistics manager or purchasing manager in China? The answer, as expected, is it all depends.
