What is the impact of a potential move to outsourcing within a low labor-cost region?
After all, this decision is being taken by many companies every day as the migration to low labor-cost regions such as Mexico, Eastern Europe, India and China become the “norm” rather than the exception. Through the application of SCOR and having done some mapping of both current and future-state supply chain designs – you can visualize the impact to the basic supply chain processes of: Plan, Source, Make, Deliver and Return. By examining these key supply chain elements based on SCOR, you can uncover examples (illustrative purposes only) of the potential impacts to both the supply chain processes as well as the associated metrics: PLAN: • Customer requirements (demand information) must be shared (real-time) with new manufacturing supply source • External production capacity may be difficult to isolate and/or extract and therefore make it more difficult to incorporate in the demand/supply balancing process • Planning decision policies may not be respected (e.g. prioritization and alloca
