Design Con 2015

The 'Ponderous Chain' That Keeps Jobs Overseas

View comments: newest first | oldest first | threaded
User Rank
Supply Network Guru
Re: logistics
Ariella   12/17/2012 8:56:45 AM

@SP Well, that depends on what it is. For example, supermarkets have started touting that they carry "local" produce, and it is not cheaper than the standard stuff. Sometimes it may even be a tad more expensive, particularly if it also lays claim to the label "organic." In that case, people feel the premium price is worth it because they are getting something fresher, probably tastier, (because produce that has to travel has to be picked before it is fully riper) and something that support people in the area (or perhaps the next state).

On the weekend of Black Friday, there was also a "Small Business Saturday" event sponsored by American Express that gave an incentive for people to do their holiday shopping at local stores rather than online. In my own neighborhood, I saw that did work. Even at stores that had no sales on, the $25 bonus from American Express made the checkout lines much longer than they normally are. 

User Rank
Supply Network Guru
Re: logistics
SP   12/16/2012 12:11:59 PM

Human minds always think in the line that good produced locally must be cheaper than one that is imported from outside. If its expensive they would wonder why, but would not ready to pay extra for local stuff.

Ned Ludd
User Rank
Ned Ludd   12/14/2012 3:16:39 PM

Prabhakar's comment is a jumble of business jargon, that justifies the way things are done without proving that this works better than any other system. Is there, anywhere, a way to analyze, financially, on a case-by-case basis -- over, say, the next ten years (rather than the next two business quarters) -- whether offshoring an entire company's operations is really cheaper than keeping it in place? Have we accepted the hollowing out of America's manufacturung capacity, and much of its service sector, without measuring whether we're getting our money's worth?

Mr. Roques
User Rank
Supply Network Guru
Re: logistics
Mr. Roques   12/14/2012 1:50:09 PM

I also find it remarkable. It would make sense if they wanted to go international and sell to multiple companies but if their customer is 50mi away, it makes no sense or it simply illustrates that there's something wrong.

User Rank
Supply Network Guru
prabhakar_deosthali   12/14/2012 10:23:32 AM

From the days when  almost each village in this world was isolated and had to depend upon the local supplies , local skills, local employment and all that local to survive, we have come a long way when people like Columbus and Vasco-d-gama set out to find new lands overseas to find new avenues of trade. May be we should call them the pioneers of the modern day supply chain.

Initially it was only goods that moved across these supply chains - raw materials and finished goods.

Now in the modern supply chain the whole businesses have got converted themselves into a distributed operations and the supply chain has become the backbone of such businesses.

The supply chain evolution has helped these businesses to optimize on material costs, manpower costs, warehousing costs and and selling costs.


So in this Supply chain centric business model there is nothing like local or overseas -whether it is jobs or material.


User Rank
Production Synthesizer
Re: logistics
rohscompliant   12/12/2012 10:40:37 AM

The logistics Genie is out of the bottle and it won't ever go back in...........until wages/shipping costs = what it would cost to be made here.......

User Rank
Supply Network Guru
FLYINGSCOT   12/11/2012 4:36:40 PM

I find it remarkable that goods can be shipped half way around the world and still be produced cheaper than using local sources.  I also cannot wait until this situation is reversed or people are willing to pay a little more for locally sourced goods.  However I am not holding my breath.

More Blogs from The Sanity Clause
Toyota announced at CES that it will put a mass-market hydrogen fuel-cell car on the road in 2015.
Westerners who paint China as a land of opportunity fail to see the precarious foundation it rests on.
Companies, bless their stony hearts, are telling their shareholders that they can take their concept of open information and shove it.
What does the Japanese DRAM business have to do with sumo wrestling? More than you'd think.
Like the casual baseball fan who doesn’t understand the infield-fly rule, normal voters – with bigger fish to fry – don’t enjoy the arcana of politics. Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Upcoming Dialogues
Live Chat 11/06: Enterprise Risks, Intellectual Property & Supply Chains
Enterprise risk management (ERM) frameworks can be useful to identify, assess, and manage intellectual property (IP) risks that arise in supply chain compliance. We'll look at real-world examples and strategies for mitigating those risks.
Remind Me
Archived Dialogues
Live Chat 10/30: Top 10 Metrics That Enhance Procurement Performance
We'll be talking about the 10 most important procurement performance metrics, from the old standards to new and emerging best-practices.
Live Chat 10/16: Applying a Macroeconomic Lens to the Supply Chain
EBN blogger Apek Mulay will be our guest as we talk about how macroeconomic reforms have the potential to impact the supply chain.
Latest Poll
EBN Newswire
FORT WORTH, TX   10/24/2014
Allied Electronics Releases 2015 Catalogue
Arrow Receives Its First Responsible Recycling ...
Twitter Feed
EBN Online Twitter Feed