Monday, 14 July 2008
Managing supply chain risks in the current inflationary environment
Given the current inflationary environment, fending off supplier increases is becoming a key skill but selling on the market inflation to customers is also important and is often forgotten or assumed that it can't possibly be done. The key is not to get caught carrying the inflation yourself. As we move from deflationary times to inflationary ones maybe this will become much more common again.
Labels: deflationary, inflation, market
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How is Vendigital helping clients to combat the rise in inflation? For labour intensive products, the solution seems to be to source futher afield [i.e. China], but how is the global rise in inflation and wages effecting this trend?
This question arose after reading an article on China's supply chain:
http://www.supplychain.cn/en/art/?2428 a
"A new report called China Manufacturing Competitiveness 2007--2008 surveyed 66 manufacturing companies, most of them foreign-owned, and found that almost one out of every five will move some of their manufacturing to other countries. The top destinations, in order, are India, Vietnam, Thailand, Malaysia and Brazil, and the reasons for leaving China were rising costs and an appreciating RMB. ...
...A lot of these companies are from Taiwan and Hong Kong, which were also the first to set up factories in China in the late 1980s and early 1990s. "Many of the Taiwanese and Hong Kong companies are trend-setters, and are also low value-added, export-oriented" firms, says T.T. Chen, chairman of the Manufacturers' Business Council at AmCham Shanghai. "They are definitely leading the trend of moving out of China, or moving inland, although we still have to track them." The exodus of those companies means the economic cycle that took four decades to complete in Taiwan and Korea -- from the 1950s to the 1990s -- has accelerated in China, with the cycle now lasting less than 20 years."
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This question arose after reading an article on China's supply chain:
http://www.supplychain.cn/en/art/?2428 a
"A new report called China Manufacturing Competitiveness 2007--2008 surveyed 66 manufacturing companies, most of them foreign-owned, and found that almost one out of every five will move some of their manufacturing to other countries. The top destinations, in order, are India, Vietnam, Thailand, Malaysia and Brazil, and the reasons for leaving China were rising costs and an appreciating RMB. ...
...A lot of these companies are from Taiwan and Hong Kong, which were also the first to set up factories in China in the late 1980s and early 1990s. "Many of the Taiwanese and Hong Kong companies are trend-setters, and are also low value-added, export-oriented" firms, says T.T. Chen, chairman of the Manufacturers' Business Council at AmCham Shanghai. "They are definitely leading the trend of moving out of China, or moving inland, although we still have to track them." The exodus of those companies means the economic cycle that took four decades to complete in Taiwan and Korea -- from the 1950s to the 1990s -- has accelerated in China, with the cycle now lasting less than 20 years."
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on 18 July 2008 11:57
on 18 July 2008 11:57Home
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