Is It Time to Rethink Your Supply Chain Strategy?Efficient and responsible globalization is a moving target |
Given rising transportation costs, some notable quality scares and a burgeoning interest (among consumers and businesses) in environmental footprints, it’s probably not surprising that U.S. companies are asking: Do we have the right supply chain strategy? When baseline assumptions change, why wouldn’t the decisions based on them become outdated?
Today, sourcing and producing in two places a world apart isn’t necessarily less costly and a company designing a supply chain might make new choices about where to locate the “add value” production step. The decision to source or make products overseas might be decided more by opportunities to grow sales in local markets than by hoped-for cost savings.
This article, authored by Sid Abrams and Kyle Kidd of Deloitte Consulting LLP, explores the need for companies to revisit supply chains designed five or more years ago so that they become and remain sensitive to the new complexities and costs of today’s dynamic, global marketplace. Doing so will require continuous adjustment, refinement and improvement on the part of supply chain executives.
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Supply Chain Strategy
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