Advice for sourcing from a real manufacturing expert in China, with more of 1000 factories audited who
participated in the first quality circles in the early 80s
The decision making process in sourcing from “low cost countries” has become increasingly complex over the last 25 years as other factors impacting global efficiencies have been thrown into the mix. More and more low-cost countries have expanded their capabilities; rising wages and exchange rates have made some former low-cost destinations unattractive.
China is preferred destination for many global sourcing initiatives. It is our considered opinion that it will continue to be so for the foreseeable future. Yet, more and more Western corporations are looking for strategic counterpoints to China arising out of concerns over labor costs, currency fluctuations, labor shortages, a graying population and Chinese policy-making.