BUSI 613 Journal Review 1 Week 2 3
1176 words 5 pagesJournal Article Review 1- Week 2
Ferreira, J., & Prokopets, L. (2009). Does offshoring still make sense? Supply Chain Management Review, 13(1), 20-n/a., pp 1-5, Retrieved from http://search.proquest.com/docview/221135949?accountid=12085
In this paper I will summarize the article, discuss the purpose intended by the authors, and discuss how this situation relates to the supply chain management theory. I will also suggest areas in offshoring where research done since its publication will enhance the findings by the author and serve as additional options for improvement.
Article Summary Ferreiara & …show more content…
Shipping rates have always fluctuated with the state of the global economy and while the author references the 2005-2008 rates, an example is the 2010 rate of suggested increases of only a $600 maximum which is well below the published results, (Ramey, 2011).
Moving manufacturing back to near or on shore is within reach and a foreseeable reality. Ferreiara & Prokopets noted the fact that companies want to reach these goals through a multi-region strategy (p. 3). The biggest question posed is how much to bring back with so many operations overseas? The authors reported that 30% of the executives they surveyed in a study were contemplating change while 59% are actually changing their strategy. I totally accept these findings but I would like to have seen more detailed numbers to support the changes and ones which definitively define what sectors are actually changing.
Moving operations back onshore from overseas can be a nightmare for managers. Ferreiara & Prokopets discussed the difficulty in deciding which ones to move back and which ones to let stay outsourced as being a major hurdle for managers. While it is easy, and in recent years, has been seen as ethical to bring back operations from overseas, the migration over the years of manufacturing offshore has decimated the local manufacturing infrastructure and its workforce (p. 3). Managers can have a difficult time finding reputable companies to produce