16 October 2007 | Antony Barton
Goods and services from low-cost countries will increase by 46 per cent by 2010, according to a survey of US supply chain executives. This represents a 130 per cent increase since 2004.
The study of 120 purchasing and supply chain executives also reveals developing and managing suppliers in low-cost countries is their fifth highest priority for the next three years.
Their top priority is improving supplier development and collaboration, followed by a move to centralised procurement and improving the skills of the purchasing team.
Some 82 per cent of respondents expect to boost their sourcing from China over the next three years. This represents rapid growth, with 56 per cent of respondents reporting increased spend in China over the past three years.
The survey reveals the top challenge in achieving global supply chains is managing language, time or cultural differences. Identifying and qualifying suppliers comes second and ensuring supplier quality comes third.
The report Global Supply Management: Strategies for Success in the New World Economy was conducted by Supply & Demand Chain Executive magazine.