THE NEXT DECADE IN SOURCING
A Methodology Using Lean Thinking to Aid in Reshoring Analysis
BY DEREK BROWNING AND TOM FOCO
"Organizations have misguidedly limited lean tools to basic problem solving and waste elimination, while inadvertently adopting costly behaviors within their supply chains. "
Decades of outsourcing activity to low-cost countries without long-term, total-cost thinking has left us with risky, complex supply chains. As these decisions are exposed through the COVID-19 pandemic, many businesses are comparing the cost and risk vs. price savings of long vs. short supply chains.
In this paper, Tom Foco and Derek Browning reflect on recent misapplications of lean thinking’s basic principles to the supply chain, examine key reasons the industry often overlooks that wisdom, how the consequences have brought us to a crucial point of decision, and what organizations must do to course-correct for the future of their supply chains.