Global manufacturing shifts strengthening supply chains

Shifts in consumer demands as well as rising fuel and transportation costs are forcing companies to examine their distribution networks for ways to lower expenses.

For many businesses, the solution has been to establish factories closer to home. Many American firms have created manufacturing centers in Mexico and the U.S. Cision Wire reports that production in North America has become focused on high-end products requiring customization or specialized engineering.

This trend has also created advantages for the supply chain. Fox News notes that the geographic proximity of the factories means lower transportation costs. Shorter supply lines could also mean fewer delays, enabling firms to get products to market faster and become more agile.

Companies can maximize the benefits of this shift by working with a third party logistics firm. Outsourcing transportation management could generate greater savings for retailers as they are able to take advantage of the logistics firm's experience to increase capacity.

Enterprises are increasingly outsourcing non-core business functions to remain competitive. Relying on specialists for logistics could help organizations strengthen their supply lines without adding expenses.

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