Asian Business Leaders Prefer To Outsource Supply Chains

While supply chain executives in the U.S. and Europe manage their supply chains internally, executives in Asia are outsourcing these functions, according to a survey conducted by Harris Interactive for UPS.

At a symposium co-sponsored by UPS, called Longitudes '05, held in Shanghai, on Oct. 24, Asian supply chain executives spoke about their supply chain practices. While 29% of the Asian executives had moved "very extensively" or "completely" to outsourcing, only 11% of the U.S executives placed themselves in that category. Additionally, 27% of the U.S. and European business leaders said their outsourcing was "not extensive at all."

When asked about the number one supply chain objective, 7% of the U.S. and European executives said it was to "improve working capital." Not a single Asian executive surveyed saw that as their number one objective. Instead 23% of the Asian executives wanted to "improve product cost" while only 7% of the U.S. and European executives ranked this objective as high.


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