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Why China Dominates The Global Supply Chain.

There are several reasons why China has come to dominate the global supply chain:

  1. Labor cost: China has a large and relatively inexpensive labor force, which has made it an attractive location for manufacturers seeking to reduce costs.
  2. Infrastructure: China has invested heavily in infrastructure, including ports, airports, and roads, which has made it easier for companies to move goods in and out of the country.
  3. Government policies: The Chinese government has implemented a number of policies and initiatives to encourage the development of manufacturing and export industries, including tax breaks and other incentives.
  4. Scale: China has a large population and a large domestic market, which has allowed it to develop a robust manufacturing base that can produce goods in large quantities at competitive prices.
  5. Export-oriented growth: China has pursued an export-oriented growth strategy, which has helped to drive economic growth and development.

Overall, these factors have contributed to China’s emergence as a dominant player in the global supply chain, as many companies have chosen to source goods and materials from China due to its low costs and efficient production capabilities.

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SCM Quotes

  • “We care about every worker in our worldwide supply chain… What we will not do – and never have done – is stand still or turn a blind eye to problems in our supply chain. On this you have my word.” ~Tim Cook, Apple CEO Tim Cook.
  • “The best time to plant a tree was 20 years ago. The second best time is today.” ~Chinese Proverb
  • “Two basic rules of life are: 1) Change is inevitable. 2) Everybody resists change.”  ~W. Edwards Deming.
  • “The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements…But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner, not in spurts.” ~Taiichi Ohno, father of the Toyota Production System.
  • “It is impossible to improve any process until it is standardized. If the process is shifting from here to there, then any improvement will just be one more variation that is occasionally used and mostly ignored. One must standardize, and thus stabilize the process, before continuous improvement can be made.” ~Masaaki Imai
  • “A little impatience will spoil great plans.” ~Chinese Proverb
  • “Globalization is a fact, because of technology, because of an integrated global supply chain, because of changes in transportation.  And we’re not going to be able to build a wall around that.” ~Barack Obama
  • “Supply Chain is like nature, it is all around us.” ~Dave Waters
  • “Be not afraid of growing slowly, be afraid only of standing still.” ~Chinese Proverb
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