Over the past decade, many U.S.-based electronics and consumer product manufacturers have shifted production to Asia to benefit from low-cost labor. However, as wages continue to rise in China, companies are taking a closer look at how to improve their bottom line. With that, supply chain strategies are playing a bigger role in ensuring a company’s profitability.
According to a 2010 study on air shipping from China, the shipping cost of sending a 40-foot (or 12-meter) container from China to the United States rose to $8,000, compared with $3,000 earlier in the decade. While shipping costs have declined a bit since then, a significant savings can be realized by packaging products in Mexico vs. China.