(Ben Simpfendorfer – Forbes)
The global consumer goods industry is in a state of crisis. For decades, it was enough to simply look for the next cheap place to manufacture. But the old rules no longer apply. To put it simply, there isn’t another China. We have run out of low-cost countries that can replicate the scale of production taking place in China today.
But even as factories in the East struggle to cut costs, consumers in the West continue to look for bargains. It’s an impossible position that has put the global supply chain under huge stress.
Eventually prices will have to rise, but until then the global consumer goods industry finds itself in a horrible position: do you chase $0.30 of savings by producing jeans in Bangladesh or do you rethink your supply chain management and stay in China? It’s a decision that will determine job prospects for millions of factory workers. Click here to read more.