Major Supply Chain Issues in China to Impact Retailers in 2008
G Studios Forms Product Development Partners to Help Supply US
Retailers
NEWPORT BEACH, Calif. (Business Wire EON) April 14, 2008 --
Product Development Partners (“PDP”),
a new joint venture formed by G Studios and leading China-based consumer
products manufacturers, announced today it has mobilized private and
quasi-government resources to address the supply chain needs of US
retailers who depend heavily on China-made consumer goods.
PDP will also employ the services of leading HK trading companies, in
addition to both the US Commerce Department and the Hong Kong Trade
Development Council. The joint venture is designed to provide
significant resources to avoid what one official termed “the
perfect storm in China leading up to the Olympics.”
Thus, PDP is uniquely positioned to assist US companies in successfully
managing the manufacturing, import and supply chain issues that are the
backbone of almost every US retailer. Visit www.productdevelopmentpartners.com.
The major issues include thousands of factory closures in the first
quarter of 2008; increased compliance regulation; wage increases of
15-25% this year and currency inflation against the US dollar in the
7-10% area. This poses a triple threat to supply chain operations in
China, in addition to the current challenge posed by the worldwide
economic slowdown and the resulting negative downward pressure on profit
margins. Further, China anticipates numerous disruptions around the
Olympics, which might last for months. For a detailed report see www.gstudiosllc.com/aprilnewsletter2008.pdf
.
PDP CEO Michael Gordon said: “For the first
time in a generation, US companies who depend heavily on imports from
China will face severe strains and significant disruptions over the next
18-24 months starting this spring. This means fall and holiday goods for
US retailers could be impacted in a big way. With multiple issues to
address, each more critical than the next, we felt it was an opportune
time to launch PDP and enroll leaders on both sides of the equation to
assist US companies and ensure continued operating efficiency and cost
containment in order that the negative pressure upon retail margins
would be mitigated.”
With over 2,500 people in China, PDP offers critical supply chain
management solutions and implementation to Companies needing additional
support and/or crisis management with manufacturing or transportation
issues.
Keyword Tags:
chain, china, critical, issues, major, manufacturing, retail, retailer,
supply
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