I think this is where the expansion of distributors is comin into act. Recentrly we have head about different distributors forming joint venture to become a true global suppliers. Distributors are making the job easy to suppliers and OEM's. I appreciate if Barbara can comment more on this ...
In my opinion for all the decisions related to relocation of manufacturing, design team or such things the final aim is to maintain or reduce the final product cost. So the cost overhead for any additional logistics required fo rmaterial movement, or finsinshed product movement is already taken into account.
The changes may however happen in supply schedules and delivery time required becasue of changed locations.
The big problem that no one wishes to talk about here is robustness of supply chains.
If we do for an even more Globally distributed Supply chain(without redundancy) than we can't assure that it is robust especially close to main consuming markets.
That is critical-Not only do we need a Global supply chain but we also need it to be close to major consuming markets.This is where Countries like Mexico(for the United.States) and Poland(for Western Europe) come in.
"OEMs expect consistent pricing and delivery from component suppliers, no matter where the manufacturing facility is located."
Even with the distributors involved, when the manufacturing facility is shifted from one region to another, the costs of transporting and warehousing can change considerably. Barbara, how do distributors manage this and ensure that the increased costs do not add to increased prices for customers?
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