Design Article
Asia-Pacific electronics manufacturers lag in green practices
Christopher Hazen and Polly Leung
12/18/2008 8:14 AM EST
Based on research conducted in the fourth quarter of 2008, a major gap exists between the expectations of US, Japan and EU-based electronics companies and retailers for environmental compliance and sustainability, and the capabilities of their supply chains in Greater China and South East Asia.
Low-cost labor and cheap logistics are no longer sufficient to assure the competitiveness of the Asia-Pacific electronics supply chain during the next business growth cycle. With increasing labor and logistics costs, many companies in Asia-Pacific may find themselves increasingly uncompetitive in overseas markets without significant adjustments to their management systems and processes which add value for their global customer base.
In this context, the large gap between market expectations for environmental compliance and sustainability and actual operational practices therefore poses a significant risk to the Asian electronics supply chain during this current business cycle.
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