Considering more than China’s labor costs

0

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.

Please check out my main blog page at www.leanblog.org

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author's copyright.


What do you think? Please scroll down (or click) to post a comment. Or please share the post with your thoughts on LinkedIn.

Don't want to miss a post or podcast? Subscribe to get notified about posts via email daily or weekly.


Get New Posts Sent To You

Select list(s):
Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.