I came across this post from the Supply Chain Management Review.  In it, Sean Murphy looks ahead to what he thinks will happen to supply chains in 2009.   Sean makes several interesting predictions, but the one that caught my attention is his prediction that companies will be re-evaluating their sourcing strategies, especially those targeted at China.   Sean makes several points to back his prediction;  Labor costs in China are going up, eroding the cost savings associated with outsourcing and fuel costs, while currently low, are not going to stay low and will become and issue for distant sourcing.  What Sean didn’t mention, but is equally likely to be a consideration, is the impact of the quality fiascos that occurred during 2008 and the ongoing difficulty (communications, lead times, political issues) of managing a contract manufacturer on the other side of the world.

Other predictions from the article?

• A greater focus on “Green” – but not necessarily for the sake of being green.  Many studies have shown that environmentally friendly initiatives are a good way to save money and programs to reduce costs often lead to a smaller impact on the environment
• CIOs will play a bigger role in supply chain technology investment as the company forces a more rationalized approach to IT spending
• Supply Chain Management as an educational discipline will continue in 2009 with the development of standards around Supply Chain Management programs

Is your company reviewing their outsourcing strategy?  Do you have other predictions for 2009?  Respond back and let us know!

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Tags: Supply chain, Supply chain management
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