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Location: Sourcing from an Emerging Market
Discussion: Sourcing from: The competitive advantage(?) from emerging markets
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markferguson markferguson |
Sourcing from: The competitive advantage(?) from emerging markets
May 8 2007, 1:44 PM EDT The mantra of chasing low costs has received significant press coverage. - Desiring a global footprint: Many speakers talked to the desire to source from a country because they wanted to sell to that country at some point in time. This can also mean sourcing in developed countries to support a market there. - The total landed cost needs to include the cost of complexity. Motorola noted a labor cost differential of $10/unit for moving manufacturing from Mexico to China. However, if their forecasts are wrong, and product needs to be air shipped, the savings are more than wiped out by transportation costs. 1 out of 1 found this valuable. Do you? |
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