NO Weak Links

摘要

During the past 20 to 30 years, there has been an accelerated effort to move product manufacturing to the lowest-cost location. In the case of complex products and supply chains, this can lead to suboptimization of the supply chain system. Suboptimization may occur when the pursuit of the lowest piece price actually adds cost to the system. A systems approach to analyzing an entire supply chain to determine nonvalue-added activity-some of which is introduced through the pursuit of low-cost suppliers-can help to optimize and rationalize a supply chain and result in cost savings and efficiency improvements.