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The Cost Advantage of Reshoring

Idea posted: June 2018
  • Operations

Reshoring is the decision to return business activities to a firm’s domestic market. Analysing the impact of reshoring announcements on stock prices indicates that the benefits of reshoring outweigh the costs.

Idea #709
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Pedestrians in Toronto, 2013 (Source: Wikimedia Commons)

Serving a Few Major Customers Vs Many Diverse Customers

Idea posted: August 2016
  • Operations

Contrary to the accepted wisdom, manufacturers with a small number of major customers benefit from collaborative practices that lead to less demand uncertainty and greater inventory efficiencies. Manufacturers with a large number of disparate customers are the ones who must keep higher inventory level for longer periods of time, resulting in more inventory write-downs and reversals.

Idea #619
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Hands with flowers

Collaborate with Suppliers to Ensure Green Practices in the Supply Chain

Idea posted: August 2016
  • CSR & Governance
  • Operations

A new study shows that collaborating with suppliers, rather than just monitoring them, is more effective in ensuring that they are engaging in green and sustainable practices. Internal non-coercive drivers (for example, pressure from top management rather than government regulators) encourage buyer/supplier collaboration. 

Idea #617
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Supply Chain Risk: Diversification Vs Under-diversification

Idea posted: December 2014
  • Operations

When catastrophe strikes a link in the supply chain, companies respond by dramatically diversifying their suppliers — only to eventually consolidate their suppliers as the memory of the disruption fades. This inconsistency is costly and ineffective.

Idea #468
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The commercial centre Xujiahui (Source: Wikimedia Commons)

Buyers Beware: Costs for China Rising

Idea posted: November 2014
  • Marketing
  • Operations
Institutions: NUS Business School

An extensive survey reveals new cost challenges for China-based suppliers, although the country maintains the strengths that it made it the go-to supply source in the first place.

Idea #461
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Electronics factory in Shenzhen, China, 2005 (Source: Wikimedia Commons)

Outsourcing Vs Reshoring: The Case for Local Manufacture

Idea posted: August 2014
  • Strategy
  • Finance
  • Operations

Companies offshore their manufacturing to take advantage of lower wages and other cost savings in overseas countries. However, costs incurred from having an extended supply chain may in fact be wiping out the savings from offshoring advantages. MIT Sloan visiting professor Suzanne de Treville believes that one can make a financial case for reshoring manufacturing.

Idea #429
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St Nicholas saves a storm-tossed ship, Gentile da Fabriano (c. 1425)

Is Your Supply Chain Prepared for the Unexpected?

Idea posted: July 2014
  • Strategy
  • Operations

Supply chain management is a delicate balancing act in these unpredictable times – on the one hand, there is pressure to keep the supply chain as cost efficient as possible, while on the other, it needs to be flexible and resilient in the face of unforeseen events. How do leaders proactively manage the risk of disruption?

Idea #414
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