Global Supply Chain Risks
In the late 1990s to mid 2000s, there was a major global shift to source or manufacture products in Asia and parts of Eastern Europe for lower costs by leveraging lower labor costs and, in some cases, local foreign government incentives. Over the past 20 years, large global infrastructures have been created to support the global manufacturing and sourcing initiatives of such shifts. In the pressure for lower costs and increased revenues and profits, many organizations either built or outsourced their manufacturing offshore.
Recently, in order to reduce risks or add flexibility to the supply chain, some firms have “regionalized” their sourcing or manufacturing strategy, where products are sourced or manufactured closer to the region where the products are consumed. Still, with the recent China-USA Tariffs initiatives, many organizations are re-rationalizing their global sourcing or manufacturing strategies. In some cases, organizations are finding out their supply chains are too reliant in one region.
IMI, a Global Electronics Manufacturing Company, with 19 factory locations in USA, Mexico, Europe, Asia and the Philippines, is constantly working with global organizations to evaluate their global manufacturing and sourcing strategies based on economic changes worldwide.