Wednesday, 23 November 2016

Why Reshore Manufacturing? It's the Only Way to Avoid Defective Pirated Parts

oftwominds - Charles Hugh Smith:



Reshoring the entire supply chain so it can be trusted is the low-cost solution once you add up the total lifecycle cost of a hopelessly counterfeit global supply chain.
There are two basic arguments against bringing manufacturing that was transferred overseas (offshored) back to America (reshoring):
1. It's too costly
2. The supply chain is now in China/Asia and it's not possible to source the parts needed to bring manufacturing back to America.
I beg to differ on both counts: nothing is more costly and destructive to profits than defective, pirated parts made overseas. Counterfeits made to look like legitimate parts are highly profitable to the counterfeiter and immensely damaging and dangerous to the manufacturer and end-user.
In a global economy burdened with massive overcapacity, the only way to maintain profit margins is to lower costs by cutting corners: in effect, defrauding customers by delivering deceptively reduced quantity and quality, and/or defrauding the end-producer by shipping low-cost counterfeit parts that mimic legitimate products.

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