In previous Reshoring articles, we introduced the power of value stream cost accounting to improve performance, profitability and teamwork. Our case example promised a second article on demystifying cost accounting. I struggled with this commitment due to the events of the past few weeks. As of November 3, [...]
Case Study: A $400 million OEM designing, and manufacturing telecommunications and medical equipment outsourced manufacturing to an Electronics Manufacturing Services (EMS) company in Mexico. Issues with quality (>10% rejects), on-time delivery (~80%), requirements to maintain excessive finished goods inventory, and the increasing costs associated with managing the EMS contractor (up to [...]
Material originally presented in OMEP Webinar, June 23, 2020. By- Debra Mervyn- The Mervyn Group In-Shoring is defined as using USA based manufacturers and suppliers for the outsourced activities. Near-Shoring (or Regionalization) is the use of countries located on a continent or region for the outsourced activities. Reshoring is bringing back [...]
As described in Reading, Writing, Arithmetic and Reshoring companies were forced to or jumped on the bandwagon to move manufacturing offshore, in part, to lower cost of products or services. Accurate cost accounting started to expose hidden costs chipping away at margins. These hidden costs were not hidden but dumped in [...]
Reading- History of Off Shoring The origins of Offshoring to a U.S.A. enemy can be traced to World War II when Chiang Kai-shek was displaced by Mao, thanks to the United States, but that is another story, Link. Communism ensued and U.S. China problems began at our own hands. History is [...]