Posted by: productivityinc | August 7, 2013

The Offshoring, Reshoring, Right-shoring Shuffle

BlogpostReshoring is trending up, according to some studies, as companies in the U.S., U.K., and other Western countries take a fresh look at sourcing strategies in the wake of the global recession. Why? There are lots of reasons, including company reputation concerns, political and marketing advantages, increasing labor costs overseas, and the risks of everything from labor unrest and natural disasters, to safety and quality problems and IP protection.

Boiling it down to a few key points, the top six drivers for reshoring (according to a recent MIT study) are:

  1. Time to market
  2. Cost reduction
  3. Product quality
  4. More control
  5. Hidden supply chain management costs
  6. IP protection

We’d further condense that to one key question: What gives your company long-term competitive advantage? To answer that, you have to get beyond short-term, unit-cost considerations and look at three key factors: total cost, total risk, and customer value.

Find out more, and get a link to a useful decision-making tool in the feature article of the latest Operational Excellence newsletter.


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