Sourcing and Manufacturing in the Market Region

J. Newlands, David; Alhussan, Fawaz Baddar

Document type :

Partie d'ouvrage

DOI :

10.5772/intechopen.87073

Title :

Sourcing and Manufacturing in the Market Region

Author(s) :

J. Newlands, David [Auteur]
Alhussan, Fawaz Baddar [Auteur]
Lille économie management - UMR 9221 [LEM]

Scientific editor(s) :

Syed Abdul Rehman Khan (ed.)

Book title :

Modern Perspectives in Business Applications

Publisher :

IntechOpen

Publication place :

London

Publication date :

2020-05-13

ISBN :

978-1-78984-973-8.

HAL domain(s) :

Sciences de l'Homme et Société
Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

It has been a common practice to transfer making goods to faraway low-labor-cost countries. For many managers, this seemed to make commercial sense. Sourcing in remote corners of the world takes advantage of reduced labor ...
Show more >It has been a common practice to transfer making goods to faraway low-labor-cost countries. For many managers, this seemed to make commercial sense. Sourcing in remote corners of the world takes advantage of reduced labor hour cost. This can be the most significant direct cost. This chapter focuses on the emerging trend to bring manufacturing back, via reshoring within the nation state or near(er) shoring where production is closer by taking advantage of lower cost neighboring locations. Financial analysis presented is based on differential wage rate and pipeline liability. The financial case analysis indicates overall profit that may be reduced due to labor cost; however, risk-free profit can be significantly higher. Four supply chain configurations can be determined using a simple two-by-two matrix: long and short distances between supplier and plant, and between plant and market/customer. Typically, longer distances increase the end-to-end time that is taken and increase inventory. Activity-based cost models (ABCDM) and cases originally focused on internal plant operations now are applied along the supply chain. Long inbound supply and long outbound distribution increase pipeline liability risks and typically increase the inventory due to less frequent and larger volume consignments.Show less >

Language :

Anglais

Audience :

Internationale

Popular science :

Non

Collections :