After this recent or current — depending on how you see it, “Great Recession”, there is an awful lot of optimism that the term “Outsourcing” a/k/a “China” may very well become “Near-Sourcing” in the very near future.
Yes, after all of the horrible financial reports from manufacturers, retailers, distributors and the transportation carriers in all modes, the industry is facing increased volatilities that will result in higher freight rates now and into the foreseeable future. Higher costs for fuel and a re-thinking of how far a company’s supply chain should be stretched are just some of the issues facing American businesses. Are we finally coming to our senses here in America?
Adding to this is a force that no company will be able to stop, and that is the effect of a company’s carbon footprint and its ability to compete for business in the future. Stay awake American businesses, if you do not currently have a “green initiative” within your organization you will be forced to have one real soon. The most successful companies have always measured the bottom line in any business decision they have made. What that means is that they look at every piece of the transaction to make sure it makes sense both operationally and financially. This analysis should also include other factors of great importance such as its impact on total “customer satisfaction”. WOW, now that’s an interesting term!
What is the value of having a product the customer is clamoring for; a product that is supposed to be environmentally sound; and one that should meet and hopefully exceed all safety standards, if after delivery the ultimate customer is totally dissatisfied? You need go no further than the recent Consumer Product Safety recalls of baby cribs to see the devastating impact product inferiority has. Can you say Toyota? We are not suggesting that products made overseas are inferior to products made in North America, but what we are saying is that perhaps its time to revaluate our international supply chains to see if they still make sense. Did we decide to outsource manufacturing thousands of miles from home to reduce costs but perhaps forgot to ensure our customer’s needs were totally met? There is no doubt that some American businesses may have taken their eye off the ball when it comes to evaluating their entire supply chain. Perhaps it is time to re-evaluate our supply chain to determine what the best possible option is. And that option may be to reign in our supply chains to be closer to home. Sometimes it just makes sense to buck the trend.
Tony Nuzio