GLOBAL Financial Crisis, 2008-2009, INDUSTRIAL procurement, PURCHASING
Abstract
The author ponders how the 2009 economic crisis has led global buyers and retailers to review buying policies and stock levels. He says that the financial crisis highlight the benefits of local sourcing. He acknowledges that sourcing direct from China or the Far East may give one the lowest possible price but he proceeds to point out the advantages of purchasing from suppliers in Great Britain during the economic crisis.
The author reflects on the increasing cost of imports from the Far East. He attributes the rising shipping costs to intense competition for space on vessels, supply bottlenecks and congestion at British ports. He notes that the cloture of the labour market in China is the main reason for the rise in manufacturing costs. He also mentions the implementation of productivity improvements by some Chinese factories due to pressure from importers.
Published
2008
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