Thanks for the post. I agree that shipping costs are a huge expensive that has to be considered in the total cost picture. Like you said, supply chain disruptions (whether caused by weather, terorism-linked customs delays, transportation/infrastructure issues, or any number of other issues) will continue to occur in some way, shape or form, regardless of the all the steps taken to prevent them. It seems like this costs vs promixity debate will be with us for quite some time, and companies will still have to weigh the pros and cons of each.
Thanks for the post. True, India will be a country to watch for many reasons, including the ones you mention. I think their ability and effectiveness in pulling off production for the region's growing low-cost car segment will be something device makers will want to keep tabs on. That, combined with their relatively strong software development background and customer service call center niche may make for an interesting all-services outsourcing locale.
My feeling is that the proximity of these facilities to the Fast growing markets of Africa,Middle East and Eastern Europe mean that they do have a major advantage over Asian foundries.Especially as Shipping costs and delays rise considerably(thanks to Increased checks on account of bomb threats as well as due to weather problems).
Proximity to markets is a major advantage(especially if they manage to keep their products cost-competitive with Asian Suppliers).
Hi Jenn, interesting article.I could see a steady stream of revenue for the local niche players in Europe for the foreseeable future, but I am not sure I see stellar performance.I still see Asia as the giant for some time to come.We always hear about China, which of course is the current leader in this space, but I wouldn’t be surprised to see India become a major player, if they could get their infrastructure up to speed.India’s foundry business is experiencing a revival mainly due to the automotive industry and the high demand for cars in the region, despite the downturn in the world economy.Would be interesting to see how it plays out over the next few years.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.