In decades past, many manufacturers fled the U.S. for Asia in search of one basic thing: lower production expense. But sourcing decisions today are a lot more complicated than that.
When it comes to crafting global sourcing strategies, the mantra today is total landed cost. More than just the cost of labor, it’s about lead time, service level, logistics networks, security, intellectual property protection, environmental protection and, finally, overall supply chain resilience. So how are sourcing decisions made today, in a time of volatility and uncertainty? How are all of those considerations weighed? And how do companies achieve the optimal balance between cost and risk? On this episode, we talk modern-day sourcing strategies with Ketul Patel, founder and president of OMIIA Consulting, and a former executive with Michael Kors, Toys ‘R’ Us and Deloitte. What should be localized? What should stay offshore? And how can production shifts be made without triggering chaos? Answers forthcoming, in Episode 600 of The SupplyChainBrain Podcast!
Show notes:
Patel’s book: A Journey of Elevation: Lessons for Business Transformation From Everest Base Camp.