The New Economics of Offshoring

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SmallPlanetMatt
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Stock Keeper
Not Electronics, but...
SmallPlanetMatt   3/12/2013 12:05:52 AM
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...here's a related story, from The Wall Street Journal, http://online.wsj.com/article/SB10001424127887323293704578334062190251402.html?mod=business_newsreel.   Seems that the need for flexibility and responsiveness, and a sincere dedication to keeping staff on payroll, counterbalanced low unit cost for this plastic toymaker.  Admittedly it's a low-tech viewpoint, but perhaps a valuable lesson.


FLYINGSCOT
User Rank
Supply Network Guru
interesting stuff
FLYINGSCOT   3/11/2013 6:02:18 AM
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I have heard this argument time and time again that offshoring lower margin simpler stuff can grow your own business and enable your local people to retrain to do higher margin activities.  The question is what happens when the offshore suppliers can also do the higher tech more demanding stuff?  Sure it is inevitable this will happen as developing countries develop.



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