Nearshoring,reshoring, and insourcing: Moving beyond the total cost of ownership conversation |
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| Institution: | 1. Dicke College of Business Administration, Ohio Northern University, Ada, OH 45810, U.S.A.;2. Air Force Institute of Technology, Wright-Patterson AFB, OH 45433, U.S.A.;3. Haslam College of Business, University of Tennessee, 453 Haslam Business Building, Knoxville, TN 37669, U.S.A.;1. University of Sannio, Via delle Puglie, 82, 82100 Benevento, Italy;2. College of Business, Iowa State University, 2167 Union Drive, Ames, IA 50011-1350, U.S.A.;3. Copenhagen Business School, Porcelænshaven 18A, DK-2000 Frederiksberg, Denmark;1. Darden School of Business, University of Virginia, 100 Darden Boulevard, Charlottesville, VA 22903, U.S.A.;2. College of Business, James Madison University, Harrisonburg, VA 22807, U.S.A.;3. Kelley School of Business, Indiana University, Bloomington, IN 47405, U.S.A. |
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| Abstract: | As firms from across all manufacturing sectors are rethinking their outsourcing and offshoring strategies, there is the potential for a manufacturing renaissance in the U.S. The findings from this case study suggest that the current manufacturing relocation shift is not perceived by manufacturers as a long-term business strategy (as outsourcing has been). As such, the results suggest that manufacturing relocation decisions based exclusively on models such as total cost of ownership (TCO) will not deliver anticipated near-term costs savings. In addition to TCO, firms must have access to information concerning the complexity of the outsourced manufacturer’s manufacturing and supply chain processes in order to fully evaluate the ‘as-is’ outsourced function against ‘to-be’ manufacturing relocation opportunities. |
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| Keywords: | Outsourcing Offshoring Insourcing Nearshoring Reshoring Total cost of ownership Manufacturing relocation |
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