The article “Time to rethink off shoring ” that was assigned
few weeks ago discusses how changing economic conditions may have challenged
the supply chain advantage gained by outsourcing to countries like China and
Malaysia and whether this may be an appropriate moment to reevaluate the global
supply chain and bring back manufacturing to the USA. While it is true that the
manufacturing domestically keeps transportation costs low and creates short
supply chains with quick response time, it would interesting to know how much
it would cost the companies to make a transition and also the availability of
skilled labor and infrastructure to get the thing going?
In a video that I recently came across by Rodney Brooks, a Computer scientist and former Panasonic Professor
of Robotics at
the Massachusetts Institute of Technology
discusses how the manufacturing units in
the US are not as quickly scalable as that are in China. He also says that the
supply chain is not dynamic enough to support production of 50 Million iPhones
in 3 months. This raises a question of
whether it is possible to bring back manufacturing to the USA. However, he
suggests that innovations in the field of technology introducing robots like Baxter
and also new business models like product companies selling designs in super
CAD to retailers and retailers getting the product manufactured by local
manufacturers and sell them to people could be the future of American manufacturing.
He suggests that these new Business models can help make stuff in the US and
make manufacturing more resilient.
We have already come across a lot of innovation that is
going on within the supply chains and how RFID microchips and 3D printers that
can make stuff can change the dynamics of supply chains in the future. Before
we could even wonder how long it would take for these technologies to actually
happen in reality Nike Football debuted the Nike Vapor Laser Talon with
a revolutionary 3D printed plate that would help football athletes perform better.
The plate of this cleat is manufactured using Selective Laser Sintering
technology (SLS). SLS technique uses high-powered lasers to infuse small
particles of materials into three-dimensional shapes that are not possible in
traditional manufacturing processes. Leaving the design aside, this technology also
gives the ability to make design updates within hours instead of months that
can truly accelerate the manufacturing process and also have a considerable
effect on Nike’s Supply chain. The
process helps Nike to bring production closer to market by making shoes to
order rather than to stock. Also, Nike could make the plate y in the US for its
domestic market, using US facilities to attach the upper parts of the shoe to
the plate and finish the shoe. This whole phenomenon could inspire many
other manufacturers who wish to bring back manufacturing to the US.
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