Vision. Value. Virtex

RESHORING

There is a lot in the news at present about reshoring and some useful resources on the subject are:

Reshoring Initiative: http://www.reshorenow.org/
Cerasis: http://cerasis.com/
Reshoring Institute: https://reshoringinstitute.org/

And there are other great sources.

At VirTex, we are witnessing the reshoring movement, but what we prefer to discuss is the term ‘Smart-Shoring’.  What does that mean, I hear you say?

Smart-Shoring

Optimizing the Supply Chain – A means for Competitive Advantage in a Low Volume, High Complexity Manufacturing Environment

When we discuss smart-shoring, we are not opening the supply chain up to examine high volume manufacturing and we are not debating how we can bring that type of production back to the U.S. We are systematically segmenting and focusing on low volume, high-mix production, which is made in the region, to serve the region where it makes sense.

VirTex specializes in low volume, high complexity manufacturing, which means that smart-sourcing considers where the OEM is selling into and how the OEM is selling, then it connects production to end-market consumption.  For example, if 80% of consumer electronics are sold in Asia, then it makes sense for the OEM and EMS providers to design and develop their supply chains to support the Asian end-market infrastructure, with a high volume, low-mix strategy.  This strategic direction works from a time and cost perspective.   And, vice versa, if 80% of the product is sold to end-users in North America, why spend valuable time and money bringing everything across the ocean, when it can be cost-effectively sourced, managed and produced in the U.S?

Put simply, smart-shoring is: sourcing and doing the work where it makes sense.  Whether that is driven by economics, social well-being, technology requirements, environmental issues or supply chain simplicity, smart-shoring has one constant.  Always consider the total landed cost of ownership throughout the entire manufacturing production lifecycle and the supply chain.