SCMR - March 01, 2006
Features
Supply Chain Clusters: A Key to China's Cost Advantage
“The China Price” may be the three scariest words for U.S. manufacturers. But contrary to what most people think, write researchers Lifang Wu, Xiaohang Yue, and Thaddeus Sim, that price advantage is not due solely (and in some cases even mainly) to low-cost labor. There’s another big factor in play that supply chain managers need to know about before making a sourcing decision: the supply clusters in China.
“The China Price” may be the three scariest words for U.S. manufacturers. But contrary to what most people think, write researchers Lifang Wu, Xiaohang Yue, and Thaddeus Sim, that price advantage is not due solely (and in some cases even mainly) to low-cost labor. There’s another big factor in play that supply chain managers need to know about before making a sourcing decision: the supply clusters in China.
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