“Before you consider outsourcing to China,” Fabin says, “you might want to consider which aspects of production it makes sense to outsource. You need a clear picture of your total supply chain cost.”
Another example about not being blinded by low China labor costs. Companies need to consider the costs of increased complexity as well as the 5-6 week trip across the ocean. I’ve read other accounts that say if a company has to ship even 10% of product by air freight, rather than by ocean, that China outsourcing savings can evaporate.
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