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China's Oversized Clout in My Supply Chain

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_hm
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Supply Network Guru
Hakuna Matata
_hm   11/11/2012 7:06:12 PM

Do not worry about Chnia's clout. China earned this with very hard work. They do provide diligent and prompt service. There is not point in creating problem that does not exsist. US  should worry moer to provide better quality, value added, innovative products.

 

WaqasAltaf
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Supply Network Guru
Re: China's Mission
WaqasAltaf   11/11/2012 8:07:26 AM

Sp, that's an interesting news and I heard that as well. With US govt in debt, it is possible that somebody is the leader when it comes to international money which is dollar and China is the most likely candidate being the world's largest exporter.

WaqasAltaf
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Supply Network Guru
Compromise on profit
WaqasAltaf   11/11/2012 8:00:15 AM
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For long term survival, the rational risk management should suggest that the businesses find out non-Chinese suppliers despite that they sell on higher prices. It is important to diversify risk to ensure business continuity while making it a priority over maximum profit. It is not necessary to follow what the other market players do as it is not feasible to drown if other players drown as well.

Douglas Alexander
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Re: China's Mission
Douglas Alexander   11/9/2012 6:25:15 PM
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Roberto, Every US manufacture has a code on the parts identifying place of manufacture. You can make a list of those codes and then cross check with your suppliers. It is a lot of trouble if you don't have the parts on hand, but companies like Intel, manufacture the same wafers in different foundries as a risk management tactic. If you have the manpower for this kind of research, it is probably a resource better spent in more pressing concerns for Component Engineering. Even if your final number was up around 80%, what could you do if you can't control the OEM's supply chain? I think it is a matter of time before the crisis will be upon us, and unless we regain our fiscal integrity, I think our money supply is going to get more expensive and less attractive to trading partners and affiliates around the world. Would you lend to someone who could not pay you back? You would probably want collateral. In our case, that collateral is our future economic well being. Watch what happens to the US credit rating in the next two years. When we can't borrow anymore or have to pay higher interest rates to borrow, then the hole we are in will just get deeper and deeper. I heard when I was a kid, if we dig deep enough, we will hit China. I think this puts a new spin on the old adage.

Roberto Varela V
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Stock Keeper
Re: China's Mission
Roberto Varela V   11/9/2012 5:31:55 PM
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Very interesting post. I remember an upper manager asking me if we could know where are the parts in the AVL coming from, I said yes but probably would take a serious amount of effort. I never did that investigation but I'm sure we will be above 80% of parts manufactured in China.

Now, with current distribution channels maybe an internal issue in China will not kill us immediately but I agree this is something that bugs in the back of the mind. My team is working on a 2nd source project..should we put into the mix parts not from China..mmmm.

Douglas Alexander
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Re: China's Mission
Douglas Alexander   11/9/2012 1:33:07 PM
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RoHS, "citizen patriots" is a beautiful combination of words. I think the appropriate response is, "would to God that was the case"

rohscompliant
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Production Synthesizer
Re: China's Mission
rohscompliant   11/9/2012 1:14:13 PM
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Agreed! Would it not be nice if our politicans were citizen patriots first..................folly to think that i know! Your article is good and hopefully it opens peoples eyes.......

SP
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Supply Network Guru
Re: China's Mission
SP   11/9/2012 1:06:03 PM
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Someone was telling me that now China has more USD than US themsleves. Wont be surprised. You go to any big retailer in US and pick up any product everything is made in China.

Douglas Alexander
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Re: China's Mission
Douglas Alexander   11/9/2012 12:11:40 PM
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RoHS, the corporate tax rate has driven businesses to shelter profits overseas in store front "headquarters" with maybe one person resident to answer the phone. When Halliburton took their HQ to Dubai to escape US audit of their practices in IRAQ, they set a precedent that became very enticing for others to follow. It is not just tax sheltering, but information sheltering as well. The SEC's hands are tied behind their backs. Who really controls the money supply? The answer to that is.... The people with the most money. Follow that trail and let the conspiracy talks begin. If they removed the word "conspiracy" and just used "piracy" as the operative term, then people might take what is happening in our economy a little more serious.

Douglas Alexander
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Blogger
Re: China's Mission
Douglas Alexander   11/9/2012 12:00:41 PM
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@rohs, when I look at politicians in general, they have become the hand puppets of lobbyist representing big money and private interests. The pie is only so big, and with that shrinking, who do you think will be the first to grab the biggest slices for themselves. If China is at the table and trying to snatch the whole pie, then it is soon going to be an international free for all with the biggest pieces going to the preemptive grabbers. This skill is particularly fitted to politicians. Most of us will be scurrying around for the crumbs.

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