Profitable Proximity

Product Sourcing Decisions in the Modern Supply Chain

Publication Date	July 2008
Publisher	IDC
Product Type	Report
Pages	13
ISBN Number	not applicable
Product Code	IDC04413

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approximately: $4,503 | €3,233

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Summary

This Manufacturing Insights report looks at the changing strategies companies are employing in their network planning and product sourcing business practices.

Specifically, while low-cost manufacturing is seductive initially, a "total supply chain cost" perspective is far more sensible - particularly as distribution costs grow as a percentage of total cost. Consequently, "We believe that a profitable proximity strategy will properly balance cost-optimized sourcing, lead-time optimized sourcing, and demand/supply balanced sourcing to provide a globally distributed supply network that best meets the business objectives for cost and service." - Simon Ellis, Supply Chain Strategies, practice director

Content

Manufacturing Insights Opinion
In This Report
Situation Overview
- Supply Chain 2008 Predictions and the Case for Profitable Proximity
Future Outlook
Figure: Profitable Proximity Decision Space in the Modern Supply Chain Architecture Defines Sourcing Strategy in Any Global Supply Network Design
- Evolving the Low-Cost Country Sourcing Thinking
- Figure: Strategic Choices (Rules) Define the Interface Between the Supply Side and the Demand Side
- A Profitable Proximity Strategy
- Figure: Profitable Proximity Optimization Depends on Business/Cost Model and Multiple "Influencers"
- Figure: Value Chains Drive Differentiated Profitable Proximity Network/Sourcing Strategies
Essential Guidance
- Actions to Consider
Learn More
- Related Research
- Synopsis