Supply Chain Risk: A View From China

It turns out supply chain risk is not just something that Western companies are thinking about. In an article published over the weekend, China Daily printed a good overview about some of the risks companies face when doing business globally because of the close interrelationships of company supply chains. As one example, the article cites a survey of "121 key electronic brand owners by the Electronics Supply Chain Association" where "69 percent of respondents claimed that they now have less control over critical supply chain processes such as order promising, inventory management and forecasting." China's massive infrastructure boom is helping mitigate supply risk, due in part to the 30,000+ local 3PLs which have sprung up, according to the article. In my view, from a supply risk perspective, the infrastructure advantage China has over other Asian low-cost regions is significant, especially when compared with India, which can't seem to get out of its own way when it comes to building out reliable transportation networks.

Jason Busch

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