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Automated systems put your production closer to your customers, decreasing shipping/transportation costs and making product localization or fast responses to ch
by evgen 16y ago
Automated systems put your production closer to your customers, decreasing shipping/transportation costs and making product localization or fast responses to changing tastes/fashions possible. Depending on where suppliers are located, automated systems might speed up any turn-around times in some production pipelines. Automated systems can run 24/7. Automated systems can be a cost-effective way of keeping critical parts of the pipeline in your control or at least in a jurisdiction where you have some confidence in the rule of law. CapEx can be depreciated and qualify for other favorable tax treatment.
Right now the balance may tip towards outsourcing to a low-wage country, but there is no reason to believe that any of the factors that contribute to this will remain constant.