chapter  22
12 Pages

Managing Disruptions in Contemporary Supply Chains

ByKevin B. Hendriks, Vinod R. Singhal

The rapid expansion of China as the world's leading manufacturing centre and Asia's growing consumer market power has created historical shifts in economic development and consequent changes in supply chain networks. China focused its exports on the mature US and European consumer markets which, in return, created revenue to cover fixed costs and, over time, contributed to rising profits and the largest national trade surplus in history. As the standard of living dramatically improves, China can now focus the same manufacturing assets to meet the growing needs of its own consumers and the wider Asia consumer market as well. Whilst China is still the largest production centre, the Li & Fung model will continuously shift and adapt according to what is determined to be the most optimal production point for a specific product at that specific time. Whereas China's competitive advantage has been manufacturing, India's advantage is technology.