Supply Chains 2008 : Top 10 Predictions
December 18, 2007 by SwizStick
Filed under Supply Chain Management
This month’s issue of World Trade Magazine has an important article outlining the top 10 predictions for 2008 in Supply Chain Management, as developed by Manufacturing Insights. Number 10 is something we have commented on before:
10. Manufacturing cost still matters, but companies are increasingly looking at total supply network cost when evaluating sourcing options.
Low cost country sourcing isn’t just about China, it’s also about India, Vietnam, South America … and sometimes it just doesn’t make sense. Companies need to look at all options, including low-cost country outsourcing, near-sourcing, or even moving operations to locations of growing customer segments (‘follow the global consumer’). Skyrocketing energy costs, and the implications for transportation/logistics costs may change the dynamic for many categories.
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