The location of low-cost labor largely shaped today’s global supply chains. But that has changed dramatically in the past five years. Technology is finally ready to replace human labor across a broad range of supply chain activities, which will provide companies with more opportunities to operate where they choose and reduce their dependence on Asia.
Leveraging New Tech to Boost Supply Chain Resilience
Tools such as 3D printing, simulations, and AI are changing the calculation of labor costs.
October 26, 2022
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Summary.
The major reasons Western companies outsourced manufacturing to Asia were its low costs and increasingly skilled workforce. But the disruptions of global supply chains have highlighted the risks of this supply chain strategy. However, the emergence of new technologies for manufacturing and operating supply chains are creating opportunities for relocating production closer to markets and make supply chains more resilient.