Many of us (also some outsourcing companies) are thinking that the classical, ‘static’, outsourcing model doesn’t cope with today’s level of change and speed. And it’s going to be worst and worst.

Here is a very good article from the Lean Insider blog called Consultant: Sourcing from China is a Mistake .

Lean advocates have long argued that the increased waste from overseas sourcing – in the form of additional transportation plus longer cycle time – makes no sense. Unfortunately, too many businesses and consultants believe – wrongly – that the lower production costs in China make up for any negatives. […]

[They] don’t say you should never outsource from China. Rather, they argue that if you do pursue that strategy, you should be focusing on your supply chain processes.

Of course any business has its own bottleneck and so its own ‘supply chain process’ to check.

PierG

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