CHINA
Bringing Your ‘A’ Game to Your China
Supply Chain
Leading companies doing business in China—both sourcing and selling to the local market—
are revamping their supply chains to minimize costs and empower their growth agendas. China
is leading the world economy out of its current recession, and executives are looking to sup-
ply chain improvements to fuel their own company’s comeback.
—Steven Ganster, senior vice president, Asia, Tompkins
ive to 10 years ago, just being in China was
enough to reap the benefits of the world’s highest
growth market—and workshop to the world.
may also be combined with bypassing the distribution center
and utilizing direct-to-store transportation solutions to gain
even more efficient logistics. F
Times have changed and the intensity of market competition
• Global Trade Management (i.e., using IT applications that
mandates that Western management bring their “A” game to automate international documentation and customs compli-
remain competitive. This is especially true for Western firms ance for shipments that cross borders)—These systems enable
that are exploring more ways to optimize their supply chains in supply chain processes that support decisions concerning the
cost and performance. A few areas of focus are:
routing of goods, the total costs and trade financing, and can
• Realigning hastily built supply chains with new market save companies millions in logistics costs.
realities and the company’s growth strategy—Leading firms
have rethought their supply chain structures and realigned
The Outlook
them to the new market realities. Research done by Amcham- In 2010, China will be back at full throttle on both the
Shanghai indicates that those firms pursuing an aligned dual domestic and export market fronts. The latter will evolve as
strategy (both exporting from and selling to China) perform at the West begins to fully recover, supporting a rebound in
a higher profitability than those that do not.
China’s export activity.
• Streamlining logistics—China hubbing is becoming more
Ensuring that a company’s supply chain remains competi-
prevalent as firms exporting from China attempt to optimize tive in this fast-paced market will be a priority focus for West-
costs by smart consolidation in China, moving or even elimi- ern management. To do this, companies need to bring best
nating some of the U.S. domestic distribution costs. Hubbing practices to their China supply chain.
