Do They Have To Move? Logistics Cost Analysis of Shanghai Textile and Apparel Industrial Transfer

Thomas E. Callarman (First Author), Shengrong Zhang (Participant Author)

科研成果: 其它稿件案例

摘要

The Chinese renminbi had been steadily appreciating against the U.S. dollar since 2005 and in 2008, the Chinese government introduced a revised labor law and minimum wage legislation. These factors brought a steady rise in Chinese labor costs, and this trend was going to continue as Chinese governments intended to double the minimum wage by 2015 through an annual series of incremental wage increases of 20% each year. In this situation, a medium-sized OEM — a Shanghai textile and apparel company — was considering whether to relocate its factory in Jiangsu Province. According to Fisher’s supply chain model, transportation and labor costs were the two major cost components that could have a great impact in deciding whether to relocate the factory. The case analyzes the logistics cost of Company A with different factory locations through comparisons of Shanghai and Jiangsu with regard to transportation costs and labor costs. With the labor cost increases and industry clustering, Shanghai textile and apparel companies were facing the challenges of increases in labor costs and transportation costs. Therefore, they needed to make a decision about whether to move from Shanghai to Jiangsu Province.
源语言英语
页数18
出版状态已出版 - 1 1月 2013

案例编号

OMS-14-185

案例规范编号

OMS-14-185-CE

案例类型

Library

更新日期

2016-06-18

来源

China Europe International Business School

关键词

  • Cost Management
  • Logistics Management
  • Supply Chain Management
  • Textile and Apparel

案例学科表

  • 运营与管理科学
  • 综合管理

案例行业表

  • 制造

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