As global supply chains tighten, spotlight shifts to strategic sourcing paid CroweUSA
Many businesses expected that trade squabbles between the United States and China would quickly subside given the value of the partnership between the world’s two biggest economies.
This scenario is no longer the case, however. With trade actions and reactions occurring on a regular basis, Knibloe says“I sat down last week with an after-market automotive client that manufactures products in China through a third party,” Knibloe recounts. “The products made there represent 70% of their business, but the impact of recent tariffs has added 25% to the landed cost.
or are reviewing the option. In such cases, companies first need to calculate and compare their total landed costs on a country-by-country basis, Knibloe says. The outcome of this analysis might indicate the cost-effectiveness of relocating supply to neighboring Vietnam, Taiwan and Thailand or closer to home to Mexico.
The furniture company’s hesitancy underscores the difficulty in predicting whether supply chain disruptions will ease or worsen. While the cost differential of relocating manufacturing to another country might justify a move today, the decision could backfire a year from now.In light of the uncertainty around relocation decisions, Knibloe says some companies are reevaluating product design to see where they can trim costs, and they are taking a hard look at other areas.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Mars' plan to fix a 'broken' global supply chain with $1 billion - Business InsiderMars CEO says the global supply chain is 'broken.' Now, the $35 billion food industry giant is investing $1 billion to fix it.
Lire la suite »
Morgan Stanley says global growth should recover in 2020 as trade tensions and monetary policy easeThe bank forecasts global economic growth of 3.2% next year, compared to 3% in 2019.
Lire la suite »
Meet Vedant Gupta, President Of Global Kid MediaMeet Vedant Gupta: As the president of his own media company, he's working (with his dad) to become a household name in sports journalism. He's covered an NCAA Tournament, talked to Magic Johnson, and appeared on local TV. He's 13. (OnlyAGameNPR)
Lire la suite »
Labour plans tax on global firms' profits based on UK presenceA British government led by the Labour Party would tax multinational companies&...
Lire la suite »
UK lawmaker to cast blame on global banks in South Africa Zuma corruptionBritish lawmaker Peter Hain will tell an inquiry on Monday that corruption under...
Lire la suite »
Silicon Valley Institute Of Technology Launched A Global Scholarship For Women To Bring Exceptional Talent To Silicon ValleySilicon Valley Institute of Technology venture backed by Parkpine Capital created a scholarship especially for women in tech for their global immersion programs
Lire la suite »