A new AMR Research report suggests companies are moving away from sourcing operations in China since they are finding that the risks are not worth the rewards.  Top concerns include Intellectual Property(IP) infringement, product quality riskiness and regulatory compliance. Last year's study showed the primary concerns were related to transportation costs and volatile commodity prices while supplier failure was not on most firm's radar.   There has been a dramatic change since this year's study shows that given the global economic crisis and turmoil, supplier failure is now the most pressing issue. 

A final interesting observation from the study is that companies are increasingly using simulation and modeling tools as a means for reducing risk.  Simulation tools can perform what if analysis so companies can evaluate alternative ship methods, routes and develop contingency plans to mitigate the risk of a supply chain disruption.

http://www.amrresearch.com/Content/View.aspx?compURI=tcm:7-43399