The top two risks facing manufacturers with operations in China are intellectual property protection and supplier strategies. Other risk areas include logistics and transportation, infrastructure, and national as well as local political events according to a study released Aug. 10 by Manufacturing Insights.
In the annual study, Low Cost Manufacturing in China Survey, author Bob Ferrari nsupply chain research director for Manufacturing Insight, an IDC company, reports that survey respondents also identify the top information technology (IT) tools impacting operations in China. The majority (70%) rank enterprise resource planning software (ERP) as the most effective IT tool. Supply chain collaboration portals, advanced demand or supply planning system, transportation management and control systems and storage resource management (SRM) or procurement system are also ranked by respondents.
"The increased use and effectiveness of IT and applications is a positive sign for the region. This, coupled with data showing some improvement in lead times, indicates that all in all, operations are progressing," said Ferrari.
To view Ferrari's report visit http://www.manufacturing-insights.com/MI/getdoc.jsp?containerId=MI202112