Considering more than China’s labor costs

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SupplyChainBrain: The Library:

“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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Mark Graban
Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.

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