Executive Briefings

The Real Cost of Doing Business

Manufacturing is only one small part of the total cost of sourcing, producing and shipping product. Bill McBeath, managing director in the Supply Chain Risk Intelligence Group of Marsh, offers a wide-ranging perspective that takes into account all of the elements of a "total cost" model. Figuring total landed cost is a step in the right direction; many companies realize that a global sourcing model must include inventory and logistics expense, in addition to labor and product cost. But there's more to the formula than that. McBeath discusses how two big trends - the shift from in-house to "virtual" supply chains and from local to global sourcing - are impacting corporate cost models. He outlines some of the key elements that many companies overlook - factors that can help them to manage risk and better manage global supply chains. [Run Time (Min): 12:57]


Manufacturing is only one small part of the total cost of sourcing, producing and shipping product. Bill McBeath, managing director in the Supply Chain Risk Intelligence Group of Marsh, offers a wide-ranging perspective that takes into account all of the elements of a "total cost" model. Figuring total landed cost is a step in the right direction; many companies realize that a global sourcing model must include inventory and logistics expense, in addition to labor and product cost. But there's more to the formula than that. McBeath discusses how two big trends - the shift from in-house to "virtual" supply chains and from local to global sourcing - are impacting corporate cost models. He outlines some of the key elements that many companies overlook - factors that can help them to manage risk and better manage global supply chains. [Run Time (Min): 12:57]