The AP News had an interesting article this week regarding the fact that “Shipping snags prompt US firms to mull retreat from China.” You may have read similar articles repeatedly over the last few months (maybe years, or shall I say, decades), so this may not be entirely new, and may prompt you to ask whether there is anything new here at all!
As a computer based exercise it is "easy" to see how adjusting parameters of one's supply chain impacts inventory, delivery time, and costs. But in practice I wonder how easy it is to move real production, or stage a near shore for the first time if you have been reliant on off shore for all sourcing needs.
My second thought is: the owner who will tolerate lower margins has another lever to pull, which is the price shown to the consumer. I expect the economic impact of supply chain volitility to be a shared burden between firm and customer.
As a computer based exercise it is "easy" to see how adjusting parameters of one's supply chain impacts inventory, delivery time, and costs. But in practice I wonder how easy it is to move real production, or stage a near shore for the first time if you have been reliant on off shore for all sourcing needs.
My second thought is: the owner who will tolerate lower margins has another lever to pull, which is the price shown to the consumer. I expect the economic impact of supply chain volitility to be a shared burden between firm and customer.