Even if a product is assembled in one place, its parts probably come from multiple locations. Here's how some companies are dealing with the complexities of truly global supply chains.
Companies attracted by inexpensive labor in developing nations find themselves dealing with a whole series of logistical complexities as well. Diligence is the watchword.
Dabbling in outsourcing may save a few dollars in the short term, but to make transformational improvements to a supply chain, companies need to make a long-term commitment to weaving outsourcing into the fabric of the business.
Each year Armstrong & Associates Inc. analyzes its research database of relationships between third-party logistics providers and their customers to gain insight into outsourcing trends and overall market dynamics. This report, prepared by Evan Armstrong, president of A&A, is based on a study of 3,334 such partnerships.