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That may insulate factories from fluctuating inventory supply, but it doesn't solve the problem of fast turnaround when changes are needed. If a part needs to b
by brendn 15y ago
That may insulate factories from fluctuating inventory supply, but it doesn't solve the problem of fast turnaround when changes are needed. If a part needs to be redesigned, the supplier may still have a weeks-long lead time to get the new part shipped, and has the additional problem of obsolete inventory that is now wasting space near the factory.
- damoncali 15y agoYou're missing my (sloppily made) point. China vs US has nothing to do with that. Either you consolidate your suppliers and squeeze the snot out of them, or you suffer the bullwhip effect. It can be done in the US, China, or the North Pole. The reason it's in China is cost.