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?
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.