
317Logistics
The three top issues for high-tech supply chains are cost, lead times, and responsive-
ness. However, these priorities are at odds with one another. To achieve lower costs, many
companies are outsourcing to Far East countries, notably China, but more recently to other
Pacic Rim countries. Outsourcing extends the supply chain, thereby increasing the lead
times and reducing the ability to be responsive.
The IDC survey also examined where companies plan to source their product supply
now and in the future. They found a number of companies plan to reduce their sourc-
ing in the United States and expand it signicantly in Asian, notab