The Strategy of Capacity Planning and Outsourcing of Taiwanese GarmentFactory Responding to Labor Shortages in China : a Case of Makalot

• Main Authors: Hao-hsiang Yu, 游皓翔
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/72331436223717120907

碩士 === 東吳大學 === 企業管理學系 === 100 === Due to series of stimulus issued by the Chinese government, the garment industry in China, after suffering from the financial crisis, finally reversed the downward trend in 2010. However, as the rising labor costs and the tightening of resources such as land in coastal areas, China is running out of labor and wages have been increasing in mainland China since 2010, days of abundant labor is gone, and labor shortages prevail in coastal areas. With the tide of global economic recovery, a large number of orders pour into China, and have a much bigger impact on the labor-intensive clothing sector. Facing (an enormous labor shortage)the hit of great number of labor shortages, companies in order to ensure their capacity is not affected, thus farm out lots of orders to outsourcing in China. This research intends to find out if Taiwanese enterprises in China have different strategies on enterprise productivity and outsourcing to respond to the plight of the labor shortages through case studies. Study found that, when Taiwanese enterprises in China faced the shortage of capacity caused by the staff turnover, existing capacity will gradually move outside China, and mainly converted to fulfill domestic demands. Under the effect of labor shortages, pattern of outsourcing strategy has transferred from strategic outsourcing into transformational outsourcing. When firms cope a transformational-outsourcing situation with old management model used under strategic outsourcing pattern, and ignore issues on outsourcing capacity, asymmetric information, management of multi-level outsourcing and product quality and other issues. Therefore, future garment manufacturers must strive to raise the level of management on both factory and outsourcing, in addition, to enhance the overall efficiency and productivity of enterprises, they must also provide employees with better working environments, in order to stable production operation of the plant, reduce employee turnover, and thus create competitive cost advantages.