2004
New England Supply Chain Conference & Exhibition

APICS - The Association for Operations Management North Shore Chapter 20 and Boston Chapter 10    --   The Council of Supply Chain Management Professionals (CSCMP) New England Roundtable    --    The Northeast Supply Management Group, A Special Interest Group of ISM®

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Logistics of Sourcing in China - Rob Casper & Rob Shepard

Logistics of Sourcing in China

by Rob Casper and Rob Shepard

China is the fastest growing trading partner with the US and is currently the US's 3rd largest trading partner behind Canada and Mexico. In 2003, The total amount of trade (Imports & Exports) between US and China amounted to over $180B in 2003 while the trade deficit of $124B represents about 1/3 of the US Net Trade Deficit. Growth in China has been historically strong averaging over 9% for the past 25 years but recently that growth has accelerated causing strains on China's infrastructure, basic commodity markets and its economy in general.

The growth and dynamics of this trade relationship poses many interesting challenges to Supply Chain Professionals. Sourcing in China is a reality that every industry has to address. There are political, trade regulatory issues at the macro level on down to the detailed execution issues that every US importer/exporter and logistics service provider must face.

This presentation attempts to address these issues at several levels. First, we will highlight key country statistics, basic information and general trends. Next we will offer opinions on the way to manage a supply base in China while minimizing the risk associated with all the Trade and Supply Chain Issues confronting this key trade lane. Finally, we will offer an on-the-ground assessment of current conditions within key regions of China based on research and personal case experience and then project what the future may hold.

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