Washington University Olin Business School

One of the biggest challenges in the healthcare industry is reducing operating costs, and one area of opportunity for cost savings is through the supply chain.

Re-shoring activities are underway, that much is for sure. But is this part of a larger trend that brings the fabulous news that the U.S. economy is anxiously awaiting? Or is re-shoring just a fad?

Driven by the pressure to control operating costs and focus on core competencies, the past few decades have witnessed a growing trend toward offshore manufacturing as firms move their production activities from developed countries to emerging economies.

Many people attribute the reshoring trend to the inflating manufacturing and logistics costs in low cost regions such as Asia. As the cost advantage of offshoring diminishes, will firms eventually all move back to the US? Not necessarily.

EXCEPTIONAL MANAGEMENT of the production and delivery of a firm’s products and services – its supply chain – is absolutely critical, especially in today’s challenging economic environment. Manufacturing and service organizations alike compete, in part, on the strength of their supply chain.