Going ‘glocal’

15 December 2010
Recent talk and trends suggest there could be a move back to more local sourcing in future. Price volatility, the need to adapt quickly to changes, as well as coping with increased risks – such as severe weather or natural disasters – that can hit the supply chain – are starting to be cited as reasons to source closer to home. Not so for Dell. At least, that is how it might appear at first glance... Reuters reported the computer giant plans to double China spending to $250 billion (£160 billion) by 2020. The news agency expresses surprise given that last month the company reportedly said it would spend $100 billion over 10 years. More recently, its head of Greater China and South Asia, Amid Midha, said at the Reuters China Investment Summit: “China, all of a sudden, is starting to become the centrepiece for us. If you think about it, be it design, manufacturing, procurement, sales, service support, there's more and more that can be done more effectively in China than in many other places." But it's not just a case of boosting its production base in the region, it is also a move to grow sales in the world’s second largest PC market. So this isn’t a case of globalisation competing with localisation, but is perhaps one of ‘glocalisation’ - when a company thinks globally and act locally. Maybe it is this that we will see more of in 2011.
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