Made in the U.S.A. – the new frontier for sourcing?

image
By Robert A. Rudzki, SCMR Contributing Blogger
September 07, 2010 - SCMR Editorial

Over the years, there has been a lot of play in the media and in the purchasing profession regarding the subject of Low Cost Country Sourcing and offshoring. Depending on the year, it might’ve been a popular sourcing destination to be in India, China, Poland, Hungary, or any number of other countries.

More recently, there has been a growing realization that “the obvious” global sourcing decision may not be so obvious after all. A number of factors need to be understood in order to make the right decision; among them: currency valuations, sovereign country risk, quality issues, inventory issues, transit times, supply chain risks, etc.). To say it another way, a lot of homework and a lot of scenario planning are required to ensure that today’s global sourcing decision is a smart one for the foreseeable future.

It is in that context that I found the following article interesting. The title (American Made: Five Companies Bucking the Outsourcing Trend) says it all.

http://www.livescience.com/culture/american-made-companies-outsourcing-100903.html 

What are you seeing in your business? If you are a U.S. based company, have you reversed any previous offshoring decisions in favor of awarding business to US suppliers? If you are a non-U.S. based company, have you awarded any of your business to globally-competitive manufacturers based in the U.S.?


Related Article: 10 Great Companies still manufacturing in the USA



About the Author

image
Robert A. Rudzki
SCMR Contributing Blogger
Robert A. Rudzki is a former Fortune 500 Senior Vice President & Chief Procurement Officer, who is now President of Greybeard Advisors LLC, a leading provider of advisory services for procurement transformation, strategic sourcing, and supply chain management. Bob is also the author of several leading business books including the supply management best-seller "Straight to the Bottom Line®", its highly-endorsed sequel "Next Level Supply Management Excellence," and the leadership book "Beat the Odds: Avoid Corporate Death & Build a Resilient Enterprise." You can reach him through his firm's website: http://www.GreybeardAdvisors.com

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The questions for the most recent Semiannual Economic Forecast, which was released last week, included: 1-has the strength of the U.S. dollar had a negative, negligible or positive impact on their organization’s profits?; 2-has the net impact of the depressed prices of oil and related commodities been negative, negligible, or positive for their organization’s profits; and 3-how would they characterize the combined impact of their organization’s profits on the strength of the U.S. dollar and the depressed prices of oil and related commodities.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico dropped 5.8 percent on an annual basis in March to $90.5 billion.

Shippers sourcing their goods out the Port of Oakland’s largest marine terminal will soon need to make an appointment drayage providers before their cargo is released.

U.S. Carloads fell 10.6 percent at 244,290, and intermodal containers and trailers were off 6.5 percent at 262,693.

Now that the deal, which had to clear several regulatory hurdles in multiple countries, is official, FedEx executives were able to speak a little bit more freely, albeit being somewhat guarded in regards to certain integration specifics at the same time.

Article Topics

Blogs · Global · Supply Chain · Inventory · Purchasing · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Comments

Post a comment
Commenting is not available in this channel entry.