Bosses support buyers' China strategy

21 December 2007
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21 December 2007 | Paul Snell

More than three quarters of US firms are convinced that their current supply chain checks are sufficient to deal with potential problems with Chinese suppliers.

A survey, carried out by professional services firm The Smart Cube, found that less than a quarter of manufacturers had carried out reviews of their supply chain management processes, following the high-profile cases of supplier troubles that have affected manufacturers this year (News, 23 August).

Of the 22 per cent who said they had reviewed their supply chain, one third said they would make changes to supplier selection and evaluation processes. Another 30 per cent said they would send inspectors to examine quality in factories.

Omer Abdullah, managing director of The Smart Cube, said in a statement: "Despite the extensive publicity involving lead-tainted products from Chinese facilities, survey findings indicated that manufacturers still perceive China as the preferred destination for outsourcing manufacturing."

He added that most manufacturers saw the incidents as isolated, supplier-specific problems, and relocating to other locations would not guarantee similar issues would not occur.

SMdec2007

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