GLOBALISATION HAS BEEN one of the major talking points in international business but it means different things to different people.
Some companies, for example, have realised that the best way to boost profits and break into new markets is by looking in their backyards - and reorganising their factories and work practices.
'In the apparel business, many of the bigger overseas buyers now prefer to work with partners who have the capacity and the technology to handle the entire product cycle from design to logistics,' said Frank Sauceda, senior vice-president for corporate human resources, Luen Thai.
The company anticipated this shift and took the decision to establish its own 'supply chain city' in Fenggang, on the outskirts of Dongguan, covering about 1.4 million sq ft and employing about 7,000 staff.
The facility is based on a design-to-store business model, and represents a commitment to build long-term partnerships with both customers and suppliers.
The guiding principle has been to locate all essential development and manufacturing functions at one site, thereby improving efficiency and reducing costs.
Several factors influenced the choice of location. The first was Dongguan's proximity to Hong Kong, which made it easier for overseas customers to visit the facility. Then, there were good transport and communication links. And finally, there was the ready availability of labour in Guangdong province.