EsResponding to Cost Increases In China / IndustryWeek
Given all the trouble that Chinese factories are having, are price increases really still a problem? So far, yes. Declining demand is leading to factory closures (see previous post), NOT downward pressure on wages.
Our IndustryWeek piece evaluates three strategies for responding to cost increases:
- Identify the “New China” (i.e., look to new countries)
- China is the New China (i.e., look at new regions within China)
- Leverage your suppliers’ networks (i.e., authorize subcontracting)
Would welcome your thoughts, here or over at IndustryWeek.
Written by Josh Green
Yesterday I came across the article that you wrote for Industry Week (http://www.industryweek.com/ReadArticle.aspx?ArticleID=17848&SectionID=2). It is obvious that Panjiva is a fantastic new tool for sourcing professionals so as to avoid factories with a high probability of failure, capital losses and supply chain delays due to of the “Great Squeeze.” We look forward to working with you.