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Point of view
by ehsan on July 10, 2008

If we accept this as a fact, then I have to say that this only advantage is disappearing: China is not a low cost country anymore and the cost of operations, labor and materials has increased a lot over there. That's not the case for consumer goods but also for many products.
The other day I was talking to director of strategic souring for one of the biggest renewable energy technology providers and as he was saying, the advantage of manufacturing and souring in China is decreasing for them and they are thinking of options such as relocation of operations to areas which might be a bit more expensive but tax friendly.
On the other hand, as China has adopted many of the techniques in advanced manufacturing, it poses a threat to the western companies. With this double threat, the question is how we can make an opportunity out of this situation?
Permalink: China-based supply chain becoming a threat?
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/128458
Mr Wong
Vote for China-based supply chain becoming a threat?:
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Rating: 9.50 out of 4 vote(s) cast.
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Response from:
Sandeep
(07/11/08 2:44pm)
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China, I think, will go through the same the path which the developed countries have travelled. The major shift will now happen because of the change in the logistics costs due to increase in the oil prices and a lot of companies would prefer locations closer to markets even if they are costlier. It will be the Total cost of Supply Chain which will matter at the end of the day.
Sandeep