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Global Sourcing and Manufacturing
R9 International Sourcing & Consulting
Global Sourcing & Manufacturing
The growing sophistication of Asian based manufacturing is a triumph of logistics that would make an army general green with envy. Not only do all the materials required for a typical production line have to come together correctly, they have to come together at a precise moment in time. This is business in today’s international era, and it demands constant upgrading of process, materials, and workforce.
It’s no longer the norm to apply borders in today’s business setting. For an example; a typical western company will engage with a China based sub-contractor to manufacture their products. The materials are most likely imported from 3-5 Asian based countries, the design and marketing come from the US or EMEA, and the products are produced by mainland Chinese, in a factory which is likely owned and managed by a Taiwanese company.
In the coming months / years, Asia’s competitiveness will depend more on factors outside the factory gates. As the traditional advantage in low-cost labor begins to erode, most Asian nations will soon realize that if they want to continue to remain competitive, they will need much more than lower wages. A true global supply chain with major infrastructure initiatives and improvements will transform the way each Asian nation is interconnected with the global business community.
This is the future, and beyond.
Ron Hartfeil is the President at R9 International Sourcing and Consulting (www.r9international.com), an independent consulting firm specializing in the Consumer Goods industry. Previously, Mr. Hartfeil was the GM for Gibson Guitar, China Division, COO of Gibson’s global Baldwin brand, and Director of Global Footwear Operations at Nike, Inc.
Article submitted Friday, June 03, 2011 & read 4 times.
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