Offshoring: Bringing Retailing Back into Balance

摘要

The Chinese have a saying, "wu ji bi f?n," which translates roughly to "When the pendulum reaches one extreme, it must swing back the other way." Recently, the pendulum appears to be reaching an extreme on the issue of off-shoring, the practice of moving work to countries with low wage rates. And it will continue as long as savings from lower wage rates outweigh the additional supply chain costs engendered by the added time and distance to market. In many cases, companies seem to be using offshoring beyond the point that makes economic sense.