The Growing Importance of Supplier Collaboration in Asian Markets
Jonathan Hughes and Jessica Wadd
June 2, 2010
For many years, global companies have been shifting spend to suppliers in low cost regions, especially in China and other east Asian countries. Up until very recently, the primary driver was the significant labour arbitrage opportunity. With wages in much of Asia - particularly China, India, Malaysia, Vietnam, and the Philippines - a fraction of what they are in developed Western countries, many goods could be manufactured at signiﬁcantly lower cost, and similarly, many services, from call centre support, to software development, could be sourced at signiﬁcant savings.