How companies can optimize their global manufacturing footprint

Abstract

Companies surfed the first wave of globalization largely to exploit opportunities in low-cost countries. They wanted to find suppliers and manufacturing locations that could help them decrease overall production costs as they competed in traditional western markets. The current competitive environment pushes them out into more challenging water, but the spoils of riding the swell are greater. Companies these days are searching for low-cost locations and suppliers, and they want to gain access to the large markets that are opening up rapidly in emerging economies. They also need to develop strategies to tackle the emergence of an increasing number of players from emerging countries that are quickly building capabilities to serve international clients.