Over on Supply Excellence, Tim Minahan recently posted an excellent dispatch summarizing some industry experts' thoughts on the future of global trade. According to Tim, "With the dollar's demise and oil and transportation costs skyrocketing, Kellogg's and Whirlpool are both re-evaluating their global sourcing strategies. And nearshoring is once-again becoming more prevalent. Factor in an increasingly skilled workforce in our neighbors to the South and Whirlpool SVP of Global Strategic Sourcing, Mark Brown said, 'It's kind of a jump ball between Mexico [and China] to service the US market ... The panelists noted a number of new dynamics when sourcing South of the Border, including banditos and local government corruption. But, when weighted against the rising costs of doing business in China, the lower transport and border crossing cost, Mexican truckers newfound ability to transport deep in the US, and a host of other factors are making nearshoring a more attractive proposition for many companies.'" What else will the emerging global trade landscape bring? Check out a forthcoming Spend Matters Perspective on the subject which will be published in early July.
- Jason Busch