The End of SCM in China?

Previous studies about SCM in China have highlighted that uncertainty in the supply chain can be reduced by process flexibility, information sharing, and process integration. However, a new study by Roland Berger Strategy Consultants, titled The end of the China cycle?, warns that “the value proposition for many firms in China is disappearing as the competitive cost advantage is beginning to erode relative to other countries” and that “government policy and social issues are further compounding the complexity of doing business in China”. The authors argue that some industries in China have already passed the tipping point. As China is in transition towards high-value add manufacturing, firms need to rethink the strategy of their manufacturing footprints. Supply chain managers will continue to face volatility and uncertainty, also in China, but the new study demonstrates that managers can seize the opportunity right now. However, the Chinese window is closing quickly.