Published by:
Harvard Business Publishing
Length: 3 pages
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Abstract
No matter how good your demand forecasts are, a supply chain that is stretched internationally is exposed to a great deal of risk - and even the best-laid offshoring plans go awry. But why should a decision to outsource be an all-or-nothing proposition? Consider a hybrid sourcing strategy - a mix of ?reactive? manufacturing capacity located near end markets to meet unexpected demand surges - and a slower, less flexible ?base? capacity in countries that can take advantage of mass production operations. The result? A sliding scale that allows you to balance the advantages of both systems.
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Abstract
No matter how good your demand forecasts are, a supply chain that is stretched internationally is exposed to a great deal of risk - and even the best-laid offshoring plans go awry. But why should a decision to outsource be an all-or-nothing proposition? Consider a hybrid sourcing strategy - a mix of ?reactive? manufacturing capacity located near end markets to meet unexpected demand surges - and a slower, less flexible ?base? capacity in countries that can take advantage of mass production operations. The result? A sliding scale that allows you to balance the advantages of both systems.