Offshoring involves the movement of taking business operations out of the home country and
into a foreign country in order to take advantage of lower working costs or other incentives such
as labor pool, natural resources, or more favorable government regulations. Companies over the
last few decades have chosen to move manufacturing operations to countries where labor is
cheaper such as Mexico or China. Other businesses have taken advantage of high skilled or
educated labor that will work for less such as the case with many tech industry corporations
opening operations in India.
Offshoring has affected me most by providing me with the ability to purchase non-essential
products at a low price that once were too expensive for me to afford. For example, it was once
very expensive to own simple things that are now considered everyday objects like TVs, iPhones,
Laptops, iPads and more. Now companies are finding ways to lower costs by offshoring
operations for the various components that make up these objects and prices are dropping.
Allowing almost anyone to afford these objects.
Flattener # 7: Supply-Chaining
Supply chaining is basically the effort of organizations to align themselves in a manner that
makes it more effective to move raw goods into completed products and then move finished
products to consumers. The idea of supply-chaining was largely founded by Wal-Mart and has
since been adopted by organizations around the globe. In the highly competitive global market
we experience today, it is important for all companies to make efforts to manage costs by
increasing efficiency. The goal of supply-chaining is to help increase efficiency while
concurrently lowering costs.