Sourcing from China: experiences of Australian firms

Abstract

Purpose This paper aims to investigate the motivations of Australian manufacturing companies for sourcing products and services from China, the results achieved and whether these lived up to expectations, related barriers and problems, and how these problems were dealt with. Design/methodology/approach The study is based on a survey of 35 Australian manufacturing firms, which have moved to import some goods or components from Chinese sources. Findings Most firms that source components or products from China do so because of the cost reductions that were expected. In actuality, significant cost reductions were achieved, however these reductions were on average less than expected. Along with..