Supply Chain Management Key To Unlocking Chinese Success

Global food and drink players are taking more direct control of their supply chains in China. Although China remains one of the world's most enticing investment propositions, its consumer potential can be hard for multinationals to exploit. The Chinese consumer market throws up a host of challenges for multinationals, not least of which includes the fragmented nature of the market, underdeveloped infrastructure and the need to establish a trustworthy brand amid continued product quality issues. Faced with these hurdles, more global consumer goods players such as Swiss food giant Nestlé and US soft drinks producer PepsiCo are taking their supply chain management into their own hands by establishing direct relationships with farmers and growing their own supplies. Going forward, more multinationals are likely to hop on this bandwagon as they look to consolidate a stronger presence in the market.

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