The Global View
Global View provides perspectives on sourcing and supply-chain management in low-cost countries.
Orders increase in Asia
Asian sourcing is starting to pick up as the domestic market in China is beginning to recover. Prices are mostly stable and orders are beginning to increase. Chinese brands for clothing, electronics, and toys are spreading throughout Asia and are evident in stores in major cities like Manila and Bangkok. This allows the Chinese domestic economy to maintain some capacity waiting for an upswing in ...... Read More
Comments (2)China update: domestic demand is OK
The impact of the downturn on the economies in China and Philippines has been minor compared to other countries and the domestic economies of the two countries are doing relatively well. The Chinese government has put in place discounts on buying electronics and vehicles so domestic demand, while not booming, is OK. Inflation is down to about 1% but there is a threat of deflation which would ...... Read More
Comments (0)Wait-and-see attitude prevails in China
Asia seems calm, although logistics has been reduced by 40% out going and many factories are closed. High-end security products and telecommunications are still moving, but the capacity of low-end items from eye glass frames to electronics is dwindling fast. Some large western firms are implementing cost cutting measures, and pushing total cost of ownership sourcing. The worse is yet t ...... Read More
Comments (0)Asia waits and hopes for better times
Asia is waiting to see what the New Year brings from the largest economies. Dependent on the U.S., Japan, Germany, U.K., France, the many industries hopes to see those economies recover quickly and begin ordering again. Now in the interim holiday period between western New Year and Chinese New Year (begins Jan. 26th for a week or 10 days) companies need to get any orders shipped out the door ...... Read More
Comments (1)View on the current state in China
All is not ”gloom and doom” here in Southern China. Manufacturing may be somewhat down, but there are exports to Brazil, South America, Middle East, Australia. Life goes on even with a downturn in the U.S. Advanced design is growing in electronics, including televisions, computers and phones. The auto industry is also doing well with exports. That means suppliers to these indu ...... Read More
Comments (3)Supply chain education in China grows
There has been steady growth for professional supply chain education in China, especially for certifications. There has been a significant interest in the ISM C.P.M. program, and the new certified professional in supply management (CPSM) program. There are somewhere in the range of 50 C.P.M certified Chinese managers on the mainland and a few who have earned the CPSM designation. For a long time, ...... Read More
Comments (1)Post Olympics ….
Well, the Olympic Games are over and what a show it was! Now it is back to business. In south China, business is booming in electronics, according to my electronics sales friends. There was no drop off in component demand needs during the Olympics. Component shortages are common and many buyers are turning to the open market. That’s good news for parts brokers, but there is the issue ...... Read More
Comments (2)Olympics drive up travel costs
So the eagerly awaited Olympic Games are almost here. Eight is the lucky number in China so the date of 08/08/08 is a significant date for the start of the games. Production is slowing down during this time, security has increased time at airports and travel costs are up in the major Olympic cities of Beijing, Qing Dao (sailing) , Shanghai (soccer), and Hong Kong (equestrian). The purchasi ...... Read More
Comments (0)Round and round we go…where we stop…………?
The Philippines may emerge as an alternative to China, Thailand, and Vietnam for companies looking to establish a manufacturing presence in Asia. Labor costs in China are rising, the inflation rate in Vietnam is high and the government is demanding pay raises for employees of foreign-owned companies. Thailand is on the brink of another political crisis and the stock market has crashed ...... Read More
Comments (4)Learn the culture
Costs, time to market and intellectual-property protection are some of the normal considerations when thinking of an Asian market as a manufacturing source. But there are other ‘basic’ factors to consider. Understanding the government human resources laws, culture, holiday restrictions and retention problems are key for building a professional staff in a low-cost country. See ...... Read More
Comments (0)Companies take steps to curb rising costs in China
As I have said before, manufacturing costs in China are rising. As a result many companies are employing tools and techniques to lessen the blow of rising costs. For example some companies are doing more stocking in Asia, and then exporting when the forecast is better or more firm. This is a way of controlling the supply chain pipeline inventory. Reverse auction software tools are getting ...... Read More
Comments (0)Costs in China increase
Costs are rising as much as 20% along the coastal cities of China where most of the manufacturing is located. The purchasing price index (PPI) has increased 7% recently. China will be raising interest rates, and the RMB is already quoted at lower that 7.1 to the U.S. dollar (4 years ago it was 8.1). The consumer price index (CPI) is up much higher due to food costs but when the PPI catches up, oth ...... Read More
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