Quicksourcing – using manufacturing in Tijuana to support design in the US

An opinion piece in the New York Times (January 26,2013) by Chris Anderson describes his company, 3D Robotics, that has a factory in San Diego and another in Juarez, 20 minutes away but across the border in Mexico. He describes this choice of manufacturing as quicksourcing, creating a short supply chain that provides flexibility. The benefits are listed as (a) small lot sizes that cover weekly demands, (b) lower risk against use of pirated parts and protection of intellectual property and protection against increasing Chinese labor costs, (c) Faster delivery and (d) ability to make design changes and distribute across the supply chain quickly. Given these benefits, how much higher can Mexican costs be while still being competitive ? For what products will a combination of Mexican engineering and manufacturing beat the production costs in China for similar products ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s