Given the difficulties associated with Inter-market sourcing, "Why bother, " is
a valid question. The main reasons why Inter-market sourcing is considered to be an attractive proposition include:
It supports smaller markets enabling you to gain a toe hold with limited
risk to capital.
It provides a framework for greater product harmonisation, technology
convergence and common quality standards, improving the speed of innovation roll out.
It improves speed to new markets.
There may be the potential to significantly reduce product costs driving
margin improvement and providing more "fuel for growth."
It gives scope to manage the capacity utilisation in the overall network
giving the potential to reduce capital expenditure.
There is scope to manage seasonality effects and provide contingency supply
Establishing a valid business case for Inter-market sourcing is just the first
and usually the easiest step. Developing an End 2 End Supply Chain Design which is operable and robust to uncertainty is a much more significant challenge.
The outline process flow is shown below.
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