Global Supply Chains & Manufacturing - Manufacturing and the Economy Flashcards
what were the x3 big manufacturing industries in China
Textiles
Apparel
Footwear
What was a large driver of the decline in manufacturing in ANglo Saxon economies
Financial pressure -> Offshoring for cheaper labour
What is an example of an Anglo Saxon Country where manufacturing did not slow down
Germany
What does Jack Welch say the ideal strategy for a global company is
put every factory on a barge and move it to where they can take advantage of short term changes in economies
eg. move to where labour cost is the lowers
what are some signs of reversal of manufacturing being offshored
near shoring
re shoring
friend shoring
-> increasingly aware of the vulnerabilities of a globally dispersed value chain
what is friend shoring
locating in countries that are geopolitical allies
why are consumers concerned about offshoring
ESG
They know that the companies cannot control how workers are treated in the factories if they are located so far away
Consumers do not want to have negative impacts on somebody else’s welfare
How do the wages in the US and Vietnam differ
a months wage in Vietnam = a day’s wage in US
Are Chinese wages rising or falling
rising
What are other factors increasing costs
rising energy costs
rising shipping costs
As wages rise, what do manufacturers turn to
robots and automation
reasons to reshore
- reduce risk
- lower shipping costs and times
- better quality control
- no time difference
- same languages
- same set of rules, laws and regulations
Why have many services, such as call centres re shored
thick accents and lack of local context makes it difficult for customer service representatives to communicate effectively with callers
data privacy and security reasons (huge fines if GDPR is not complied with)
during the celtic tiger, a lot of call centres were located in ireland
then they moved to ___ when costs got to high
now where are they
India after global financial crash
Now phillippines - neutral accent
what is self producing
the rise of advanced manufacturing techniques including robotics, cloud manufacturing and 3d printing
how is technology, self-producing upending the global supply chain
reversing the traditional multinational search for low cost labour as technology can do this locally
which countries have highest number of industrial robot sales
Japan, South Korea, China, Germany, USA
How has 3d printing changed since it’s introduction
Used to be a niche for modelling and sampling
Now has many functions including £D printing human cells for skin grafting
Costs are coming down over time
what is 3D printing most appropriate for
it is slow and expensive and can only make one at a time, unless there are dozens of 3D printers, which is unlikely due to how expensive they are
so only products in low demand, customisable
what would the impact of 3D printers be on supply chains
locally made and distributed
lower carbon footprint
lower financial costs
