The 'Ponderous Chain' That Keeps Jobs Overseas

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Ariella
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Supply Network Guru
Re: logistics
Ariella   12/17/2012 8:56:45 AM
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@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. 

SP
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Supply Network Guru
Re: logistics
SP   12/16/2012 12:11:59 PM
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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
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Blogger
Re:
Ned Ludd   12/14/2012 3:16:39 PM
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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
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Supply Network Guru
Re: logistics
Mr. Roques   12/14/2012 1:50:09 PM
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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.

prabhakar_deosthali
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Supply Network Guru
Re:
prabhakar_deosthali   12/14/2012 10:23:32 AM
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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.

 

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

FLYINGSCOT
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Supply Network Guru
logistics
FLYINGSCOT   12/11/2012 4:36:40 PM
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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.



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