Benjamin Gordon is disclose and Managing Director or BG Strategic Advisors, www.BGSA.com, and can be reached at Ben@BGSA.com. Karen Rutt is an Associate for BG Strategic Advisors.
In the 1970s, deregulation spawned a new era of growth in transportation. Nimble trucking companies equal Schneider and J.B. Hunt capitalized on this opening to become multi-billion-dollar giants. In the 1990s, the implore for outsourcing produced a new category of winners, known as 3PLs. Logistics firms standardized CH Robinson and Expeditors became major beneficiaries. Today, we are on the precipice of the third major reassign to sweep through the supply chain. Like its predecessors, it has the potential to create new classes of winners and losers. The name of this powerful new trend? Near-sourcing.
The fall toward near-sourcing is underway. Car manufacturer Tesla Motors just canceled plans to manufacture its 1,000-pound batteries in Thailand as previously planned. By manufacturing them closer to Teslas home base in California, it entrust decrease the shipping distance of each outpouring approximately 5,000 miles. Other major manufacturers are following suit.
overly called reverse globalization or shortening the supply chain, near-sourcing describes the buckle under of American manufacturing in order to decrease shipping expenses. As freight costs remain high, globalization has become little competitive and is expected to remain so for the foreseeable future. We will share why near-sourcing is happening, discuss implications for the supply chain industry, and cogitate by offering ideas to supply chain line of credit owners to check their success amidst change.
Near-Sourcing: Requiem for Globalization?
Historically, cheap gas furnish globalization. It enabled companies from all over the world to shop globally for cost-saving business solutions. However, fuel costs admit nearly doubled since January of 2006, and have shot up by nearly six...If you want to fill a full essay, order it on our website: Orderessay
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