Please enable JavaScript.
Coggle requires JavaScript to display documents.
OFFSHORING & RE-SHORING (Manufacturing Network Development (Stage 3…
OFFSHORING & RE-SHORING
Moncza & Trent (1991)
Manufacturing Network Development
Stage 3
Proactive international sourcing
Seeking better prices & quality
Opportunity awareness
Stage 4
Global sourcing networks
Collaborative
Manufacturer & supplier
Overseas supply chain
Stage 2
Reactive international sourcing
Unable to source raw materials locally
Adverse domestic suppliers performance
Forced or motivated international sourcing
Stage 1
Domestic Sourcing
Ease of control
Lack of complexity
Company start-up
Decision-making
Is offshoring the answer?
Identify root cause of any problem
Consider quality, speed & flexibility needs
Some cost benefits may be transient
Ascertain total cost of moving production
Anticipate disruption
Be clear about risks
Recognise difficulty in reversing decisions
Learning Points