Logistics as a competitive advantage for an industry

The Japanese market imports a high percentage of textiles. Consider the competition between competition for Japanese markets of the textile industries of Malaysia and Vietnam. Vietnam had a distinct cost advantage over Malaysia at the production stage but this was lost when logistics is considered. Vietnam lacked a deep water port – a fact that had a significant role to play in US military operations during the ill fated Vietnam War – and this inflated their costs to reach the Japanese market. Malaysia had sophisticated port facilities in place in Singapore even before they developed their own.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter
This entry was posted in Supply Chain and tagged , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *


Please type the text above: