Offshoring loses some glamour, or how JIT became “just-in-case”


Management consulting firm Accenture has long been a supporter of company's offshore outsourcing efforts; indeed, it has helped companies to find low-cost manufacturing services. However, it appears that the consultant's tune may be changing. Accenture's recent survey and subsequent analysis revealed that 61% of the survey's 287 respondents were considering matching supply chain location with demand location by on shoring or near shoring manufacturing and supply.

There cannot be much surprise in this. The Japanese earthquake and tsunami was a "perfect" storm in more ways than one. It revealed an Achilles heel in the global supply chain, particularly with respect to the automotive industry. Add to that tragedy the unrest in the Middle East, the cool relations between the U.S. and China, and other macro-political events, and having a supplier near at hand starts to get very attractive again.
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