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Strategic Supply Chain as Competitive Advantage for China-Based Firms

A PricewaterhouseCoopers global supply chain survey for 2013 indicates that 46 percent of China-based supply chains are viewed as a strategic asset by their respective companies. An article from The Asset delves into discussion about this survey. The financial performance of these China-based firms are to be applauded, as, “Based on earnings before interest and tax (EBIT) performance and revenue growth, firms in China have an average EBIT margin of 14.2% – more than that of mature market firms (11.2%) and those in emerging markets (13.7%).” At 8.8 inventory turns per year, inventory management performance is another area where China takes a step ahead. Where global and China-based supply chains converge in philosophy is that reducing costs, managing profitability, meeting increasing customer requirements, and volume flexibility are all seen as vital trends for the year. How they rank those trends varies, and the differences in those rankings are leading global supply chains and China-based supply chains to take on two different shapes, both attempting to reach maximum efficiency in their own separate ways.

About John Friscia

John Friscia is the Editor of Computer Aid's Accelerating IT Success. He began working for Computer Aid, Inc. in 2013 and continues to provide graphic design support for AITS. He graduated summa cum laude from Shippensburg University with a B.A. in English.

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