Lean Supply Chain Performance: Onshoring’s Secret Weapon
Lean Supply Chain Performance: Onshoring’s Secret Weapon. Paul Ericksen.
The issue of reshoring has been around for a while. For instance, longtime manufacturing executive Harry Moser started his Reshoring Initiative over a decade ago. Working to get Original Equipment Manufacturers (OEMs) to re-source their purchases back to domestic suppliers is important.
In addition, an effort also needs to be made to get OEMs to initially source purchased material within North America. This concept is called “onshoring.”
Facilitating such a change will not be easy. Sure, supply chain failures brought on by COVID-19 have led many OEMs to revisit their purchasing strategies, including sourcing criteria. And while it is true that sourcing with more “local” suppliers—shortening supply chains—improves supply chain order fulfillment consistency, very few strategic changes are made at large corporations without the projection that they will improve executive-level performance metrics.
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