Container movement between the US and China : Impact on supply chain management

Abstract

The substantial growth of the Chinese economy over the past decades and the accession of People's Republic of China in the World Trade Organization, have formed a completely different trade environment. Outsourcing activities are the most important activities taking place in such an environment, benefiting from low labor cost in PRC. The United States of America are heavily involved in such activities and most multinational companies from the USA have moved their manufacturing activities in PRC. As a result trade between the US and China has substantially increased during the last decade. The ability to support such increase in terms of supply chain infrastructure and the problems faced by large companies when moving to China are the focus of this thesis. An overview of the Chinese economy is also presented as to give an image of the current market conditions, opportunities and issues in this transitional stage. Nike Inc. and New Balance Athletic Shoes are examined as large companies facing problems and giving solutions to improve parts of their supply chain. Keywords: Supply Chain Management, infrastructure, ports, shipping, outsourcing, intellectual property.