The emergence of international outsourcing agents in China: A new type of player in international supply networks

As China emerges as a centre of manufacturing of the world, more and more small and medium sized enterprises (SMEs) start
to outsource their production and related supply chain management in China. But it is very difficult to effectively manage the international outsourcing and supply chain mainly because their limited size and resources. International outsourcing agents
emerge as a potential solution pursued by many western companies. Currently it has very limited information from both practical and theoretical aspects to understand the agents and their characteristics. This paper, based on four case studies of agents in three major industrial sectors in China, introduces business models and growth paths of the international manufacturing outsourcing agents, and establishes a set of key performance indicators (KPIs) for evaluation. The paper seeks to help western SMEs and hightech startups recognize the Chinese maturing and an ideal system for implementation, and to provide theoretical insights about the agents role and characteristics in international supply networks.