Perhaps the biggest driver that will ultimately cost organizations the most is the public (customer) outcry that occurs with each major brand recall or scandal.
In an age of social media, where negative public opinion spreads “virally” over the internet in a matter of hours, companies must take seriously the job of managing their suppliers to ensure that standards are being met.
In 2014, after being plagued by years of manufacturing and supply chain problems in emerging countries, more than one-third of U.S. businesses will continue the trend of “reshoring” in an effort to move critical manufacturing operations back to the States.
The goals of reshoring are to better ensure quality and other regulatory standards are met, and to avoid costly damage to a company brand from scandals, recalls, or shipment delays.
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