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Case Study 3 - Strategic Consulting & Project Management


Background: Our client, a privately-held consumer goods manufacturer and distributor, desired to secure a manufacturing site in China for their new facility. Their products are very high-end and require the best raw materials and high quality manufacturing processes. The desire was to establish a Wholly Owned Foreign Enterprise (WOFE) initially manufacturing for export to the U.S. with eventual ‘branding’ of their output for the China/Asian market.

Challenge: To review selected parts of the project plan with focus on China costs in order to validate the business plan and to ensure selection of the best location in China to establish their facility.

Solution: EWA provided a review of the business plan using selected modules from our Readiness Assessment. EWA then provided specific assistance in locating an optimal manufacturing location using the Site Selection criteria from our Readiness Modules. Working closely with the client, EWA:

  1. Developed a list of defined site selection our criteria based on our manufacturing experience in China and our client's particular needs.
  2. Identified a list of 12 qualified sites and took the client's appointed China-executive to these sites in China for information gathering.
  3. Culled the list down to 3 recommended sites for decision by the CEO (who selected one of the sites as a primary site).
  4. Led team into the primary site. Assisted in final selection of facility, identification of renovation and fit-up contractors, conducting roundtables with U.S. firms in that location, obtaining translation services, securing transportation services, lining up long-term living arrangements (for ex-pats), lining up catering services for the factory, evaluating security arrangements at the facility and coordinating other activities in support of the client such that the client could focus on their core skill of manufacturing operations.
  5. Formed a negotiating strategy for the client team and assisted in negotiating with the government officials, business park representatives and building owner for preferential consideration in lease price, lease lengths, building security upgrades, HVAC provision and obtaining all government approvals (fire bureau, environmental protection bureau and others).
  6. Used the specific cost information to validate and sharpen the business plan.

Result: Client is currently making preparations for implementation of its manufacturing strategy.

THIS CLIENT IS SERVING AS A REFERENCE FOR EWA. PLEASE CONTACT EWA FOR CLIENT CONTACT INFORMATION.

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