Sourcing and Manufacturing in the Market Region
Document type :
Partie d'ouvrage
DOI :
Title :
Sourcing and Manufacturing in the Market Region
Author(s) :
J. Newlands, David [Auteur]
Alhussan, Fawaz Baddar [Auteur]
Lille économie management - UMR 9221 [LEM]
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
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 >
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 :
Source :
Files
- https://www.intechopen.com/citation-pdf-url/68064
- Open access
- Access the document
- https://www.intechopen.com/citation-pdf-url/68064
- Open access
- Access the document
- https://www.intechopen.com/citation-pdf-url/68064
- Open access
- Access the document
- 68064
- Open access
- Access the document