December 2006
Intermediate to advanced
464 pages
8h 29m
English
book
Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace
by Thomas A. Cook
Content preview from Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace
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30 GLOBAL SOURCING LOGISTICS
In this case, the gain from offshore production may be
very minimal compared to what could potentially be lost.
When the additional expenses of importing, taxes, duties, in-
surance, transportation, logistics, customs clearance, and so
on are considered, that might bring the savings down to only
20%. When the indirect costs of travel, communications,
and legal expense are added to subcontracting overseas, that
20% savings is reduced even further. With the potential loss
of proprietary rights, the minimal savings may not prove
enough to contract and manufacture off shore.
Watson might want to consider placing some of the com-
ponent manufacturing offshore, but retaining control of the
assembly process, in which the proprietary ...
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