ABSTRACT
In these days of global supply chains it is becoming increasingly common to outsource products with high labor content to so-called low-cost countries. Competition from low-wage countries across Asia and South America means that supply chains have become increasingly complex. Long lead times, scarcity of ocean containers, and logistics interruptions cause increasing inventory buffers to cover logistics performance variability. Global sourcing and low-cost competition put pressure on supply chains to reduce cost and improve response time to the changing needs of customers and suppliers. Traditionally, companies look to lower-cost sources of materials to reduce cost while missing opportunities within existing supply chains.
