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"20th Century management was built on economies of scale. To make a single unit of a thing typically cost a lot more to produce than 10,000 would. The price per unit goes down even more as the numbers increase.
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In the foreign outsourcing of manufacturing, managers chased these economies of scale, often overlooking the additional costs of transport, inventory management, quality control, sales, marketing and distribution of large production runs, as well the risks involved in such extended supply chains. They paid scant attention to the long-run costs of losing knowledge and the opportunity to learn. In so doing, they destroyed whole sectors of the economy.
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Now the economics of large-scale production runs carried out overseas are being disrupted by the possibility of making, selling and delivering millions of manufactured items one unit at a time, right next to the customer."
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