The Deception of Offshore Sourcing Part 2

September 21, 2020 pncdev Comments Off

Views expressed in these articles are the opinions of the author and
do not necessarily reflect the views of The MFGgear Column.

by Brian Imbler, CEO The Sales Bridge 

What are the hidden costs of offshore sourcing?

1)  The Unquantifiable cost of stolen intellectual property and product replication

(China’s IP theft greatest transfer of wealth in history)

2)  Cost of dealing with inconsistency between production batches

3)  Cost of critical language translation.

4) Cost of delayed deliveries due to reduced supplier control

5) Cost of internal personnel expansion (engineering and procurement) required to manage a major offshore supplier

6) Cost of travel to ensure the supplier’s facilities and parts remain compliant and problems resolved

7)  Cost of higher employee turnover due to stress and reduced workforce satisfaction

8) Cost of lost business due to product availability interruptions.

9) Cost of fees paid to customers due to late product shipments.

10) Cost of dealing with quality problems

11) Cost of Pollution from cargo ships burning crude oil for the 7,000 mile transit

(20 cargo ships create as much pollutants as all of the cars in the world COMBINED)