W hile putting the content together for this edition of the magazine, it became clear that the overriding theme is about how quickly China’s role in the global supply chain puzzle is changing. Our feature article looks at individuals and companies who are setting the standard for supply chain excellence in China by implementing best practices and driving efficiency. Increasingly, manufacturing operations, such as the new Beijing Benz Daimler Chrysler facility are looking more like western factories, with sophisticated IT systems and state of the art supply chains to move their goods. As luxury goods grow in China, so there has been an increase in value added end-to-end logistics services to store and distribute these highend products. Of course, Chinese companies have plenty of room to grow and can still learn from their Western counterparts. Jamie Bolton, a partner at Accenture, discusses the implications of a recent study on how Chinese companies are lagging in profitability or value creation. Low-cost labour has always been the key draw for companies entering China, but this may change as Corporate Social Responsibility increases. AJ Hu’s article on changing Chinese labour laws examines legal considerations for employing staff in China. Another sign of China’s shift in the Global economy is evident in our story on the growth of manufacturing in Vietnam. Even Chinese manufacturers are outsourcing some of their operations to Vietnam and we expect this trend to accelerate in 2008 as manufacturers look for cost savings. It is no secret that the drive for cost savings is taking companies to second tier city cities such as Nanjing, where property is cheaper and labour more available. Our Q&A with a software developer in Nanjing suggests that China’s shift from low cost producer to higher value service provider is happening as we speak. Also on the topic of second tier cities, Bradley Feuling discusses the viability of warehousing outside of Shanghai. Putting China in the global picture, it’s clear from our interview with author, Jack Buffingon that Americans are concerned about the development of their economy. Trade protectionism has never worked, says Buffington and Americans need to think about how to improve domestic productivity and invest in much needed infrastructure. One solution to infrastructure problems in the US and port congestion on the west coast due mostly to Chinese imports might lie in Mexico and Canada. Michael Mackey, CHaINA’s roaming correspondent, looks at a new plan that Mexico is implementing mostly to support American trade. It looks like 2008 will be another exciting year of growth in China’s supply chain and we look forward to providing the latest news, commentary and analysis on China’s role in the global supply chain. On behalf of the team at CHaINA Magazine, we wish all our readers a happy and successful year. Editor and Publisher Russel Beron russel@chainamagazine.com Contributing Writers A.J. Hu, Andy Mukherjee, Bradley A. Feuling, Chris Horton, Jack Perkowski, Jamie Bolton, Michael Mackey, Peter Humphrey, Pilar Dieter Art Director Colin Dizengoff colind@imprintasia.com Graphic Designer How Xu Chaina magazine editorial advisory committee Dittmar Nerger Head of Global Sourcing Bayer Healthcare Dong-Hong Zhu Head of WW Procurement (China), Materials Manager, Agilent Technologies Shanghai Guy Tran Logistics Manager, Auchan China Hypermarkets Jean-Luc Laboucheix Supply Chain Director Asia Pacific, Goodyear Max Henry Founder and Executive Director, Global Supply Chain Council Michiel Hijma Senior Manager, Bertelsmann Directgroup China Nis-Peter Iwersen Vice President, Danfoss China Robert Jiang General Manager, Dajin Logistics Tony Li Logistics Manager, Amway China CHaINA Sponsorship For information on sponsorship opportunities with CHaINA Magazine, please contact: Russel Beron russel@chainamagazine.com ADVERTISING SALES Giselle Yang, Business Development Manager giselle@chainamagazine.com +86 134 7254 2205 DISTRIBUTION We distribute CHaINA free by direct mail to subscribers in China, Hong Kong and Singapore who are involved in all aspects of supply chain management, manufacturing and logistics. Our target subscribers are logistics, warehousing and transportation directors and managers; sourcing, procurement and purchasing directors and managers; and manufacturing executives at foreign and domestic Chinese companies. For subscription inquiries, please contact: subs@chainamagazine.com, or subscribe online at www.chainamagazine.com. Starting from the January February edition, we will also be emailing a digital edition of the magazine free upon request. Also beginning in January 2008, we will distribute CHaINA Magazine through selected locations in Shanghai, including hotels, restaurants, business centers, airport lounges and other key locations. Russel Beron Editor and Publisher CHaINA Magazine Chaina magazine’s sponsors: Comments and Feedback We welcome feedback and comments about our content or any issues relating to supply chain management in China. Our next edition will also feature a Letter to the Editor column. Please email any comments to the Editor at: russel@chainamagazine.com CHaINA Magazine (ISSN 1992-9668) is published jointly by Painted Horse Media Limited (Hong Kong) and the China Supply Chain Council Limited (Hong Kong). There is no charge for quali ed readers to receive subscriptions. Send subscription requests or address changes to subs@chainamagazine.com. The contents of the magazine may not be reprinted in whole or in part without the permission of the publisher. The publisher is not responsible for product claims and representations. CHaINA is a registered trademark of the China Supply Chain Council. 4 JANUARY/FEBRUARY 2008 www.chainamagazine.com previous page next page