Supply-chain management is a must for next generation of manufacturers

Cheap labor has given Chinese companies an edge for decades when it comes to making products for less than their competitors in Europe or the United States.

But that advantage is fading, and supply-chain management will become a crucial factor, experts said.

"Customs clearance, inventory control and fast delivery can be huge advantages and make a big difference in China, as the competition is so fierce. Today, people want something and they want it fast, so you have to be prepared for everything and predict demand before it happens," said Charles Chase, a consultant in the manufacturing and supply-chain practice of SAS Institute Inc, a US-based provider of analytics software.