Viewpoint — China’s Evolving Supply Chain

from industryweek.com

By Bradley A. Feuling, CEO, Kong and Allan, LLC

When companies first entered China nearly 30 years ago, cost was the primary driver. In one sense this hasn’t changed. A large number of companies still compete on price. Many soon realized quality was increasingly important in work environment and production, so the advantage shifted. Now quality is a topic of current consideration that manufacturers continues to develop. As the gap quickly closed between these two differentiators however, the focus evolved, this time to machinery investment, and internationally recognized certifications such as ISO and Six Sigma. A fundamental adaptation had occurred, but today, this gap is closing as well. The advantage is nearly gone. So where to turn next? Today, companies must further explore process improvement paying particular attention to the China supply chain itself. But what does it really look like?

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