Tuesday, March 20, 2012

Fighting Rising Costs on China

I came across this article and it seemed interesting because
China is now integrating social responsibility into their supply chain to
reduce cost. I thought they had the lowest prices to begin with? Isn’t that way
many Canada and United States Company have moved there manufacturing companies
to china in the first place? On the other hand saving money for any company is
a good thing, allows them to possibly spend it on making their business more environmentally
friendly or giving back to the communities. The kinds of things the companies
in the supply chain in China are doing now are:

Reduce maverick purchasing
Use all resources at hand
Coordinate energy consumption
Focus on quality management
Consolidate logistics and documentation
Use smart packaging design

Brenda Foster, president of AmCham Shanghi said “Integrating
socially responsible practices into companies’ supply chain management has
multiple benefits. Our latest viewpoint clearly show that companies who are
successfully doing curb rising costs while achieving regulatory compliance
objectives and building strong brands, as well as contributing to sustainable
development in China,”

Which I agree with her completely, adding in CSR practices
across the supply chain can reduce costs by a huge amount by calculating energy
and resource usage. Also, companies can force their fair labour practices,
environmentally friendly souring and sustainable manufacturing processes to
build their brand and gain customer loyalty.
So over all, I believe China bringing CSR practices to the
supply chain is a defiantly a good thing. Help develop their economy on so many
levels. Since there is so many people living in China it would help with
pollution when companies go environmentally friendly and so on.


BY: Marissa Hanrahan

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