True Unit Costing: Looking Past China
True unit costing is a better way of calculating sourcing costs when looking beyond China. A look at design, manufacturing, shipping & distribution.
Recent trade data shows that firms and brands have been moving production from China to Bangladesh, Vietnam, Pakistan, Indonesia, and the Americas. Rising labor costs, minimum order sizes, and long shipping times are all big drivers of the shift. But many firms are finding a deal that looks good on paper - a $5 jean from Bangladesh, for example – doesn’t always pencil out.
True Unit Costing is a better way of figuring out how much a product will cost, as firms move into uncharted waters. From Macy’s to Marks & Spencer, successful firms are looking beyond FOB or manufacturing costs to evaluate the whole supply chain. As a result, they’re gaining accuracy, transparency, timeliness, and profits.
In this white paper, Sourcing Journal and GT Nexus team up to discuss five areas where major firms are learning to see the big picture - Design, Financing, Manufacturing, Shipping, and Distribution.
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