Thursday, 20 December 2007

Off Shoring

The movement of production to low cost sources has been going on for centuries. The difference with Offshoring is that the current Market leaders are looking to do it themselves, and stay in position, rather than have it done to them.

Successful competition in all markets drives many companies to look at Offshoring solutions. For some that may be the right decision, or part of the solution. While the impact of the distance to market has many implications for Supply Chain design, including working capital impacts and responsiveness, the opportunities can be unquestionable. Having decided it is a valid theme to pursue however, you must get it right.

Wedgewoods much publicised offshoring exercise (see http://www2.theiet.org/oncomms/sector/manufacturing/magazine.cfm?issueID=209&articleID=C8968999-DB8B-F8ED-F597FE6FA7ECCDBA) talks of the hard won experience from their relocation of Johnson Brothers Tableware.

For the very lastest review of the key challenges facing companies when looking to offshore please follow this link to the IET's website for an article in their latest Manufacturing Engineer Magazine
http://www2.theiet.org/oncomms/sector/manufacturing/magazine.cfm

Happy reading and all at Machan Consulting wish you a very peaceful Christmas.
Post a Comment