Abstract
An efficient supply chain is becoming increasingly important as globalization and technological advancement combine to make the modern marketplace more competitive than ever. An example of this can be seen at Matsushita, a Japanese‐based industry leader who has had to fight to remain competitive in the face of low‐cost Chinese competitors. Faced with declining sales and profits due to cost deficiencies in its supply chain, Matsushita realized that its long‐term success was contingent upon a supply chain realignment. This realignment has included the transfer of many tasks to China. Historically known for its inexpensive land and labor, China is increasingly becoming recognized for its technological expertise and the availability of low‐cost production components. Matsushita’s revamped supply chain is utilizing all of these resources. Through this realignment Matsushita hopes to reverse its recent trend of declining sales and profits; the early results are promising.
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