A key lesson of this decade has been that shorter supply chains add flexibility to support varying market
demand. They also reduce logistics costs and the inventory pipeline otherwise tied up in transit or “just
in case” regional warehousing. Comparatively, some regions offer significant cost labor advantage.
Ignoring that strategy for price-sensitive products can cost market share. There is middle ground. When
manufacturing is outsourced to a supplier with a global footprint, it is easier to develop regional
outsourcing strategies that make sense for specific market characteristics such as local content
requirements, cost sensitivity, degree of demand variability and dominant market location.

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