Strategic Framework for Supply Chain Manufacturing Relocations
Open Access
- Author:
- Callenberger, Garrett
- Area of Honors:
- Supply Chain and Information Systems
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Robert Alexander Novack, Thesis Supervisor
Saurabh Bansal, Thesis Honors Advisor - Keywords:
- Supply Chain
Manufacturing
Manufacturing Relocation
Offshoring
Reshoring
Supply Chain Framework - Abstract:
- This thesis deals with the development and formulation of a standard framework to be used when analyzing a manufacturing relocation, regardless of company-owned or contracted manufacturer. In what can be a dynamic and complex concept with many stakeholders, the framework aims to create a clearer vision for a manufacturing relocation by separating its pieces and aligning them in a story that makes logical sense. Humans, alone, are irrational, conflicted by emotions, fallacies, and biases that oftentimes prevent the observation of reality. A structural framework provides the foundation for reality. The first part of the framework (Initiator) obeys to human nature and allows the eye-catching, news-headline, or conversation-starter to initiate the discussion of a manufacturing relocation. This initiator usually always catches everyone’s attention, and it’s supposed to. The initiator’s role is to promote the company’s growth and evolution. The second part of the framework (Checks & Balances) checks to see if the initiator is logical. It removes itself from the spotlight and steps back to take the most rational approach, analyzing reality for what it is and aligning company priorities with a decision. Within the writing, the most common examples of initiators are described and grouped into three categories: Government Policy, Operations, and Business Strategy. The most common example of checks and balances are also described and grouped into three categories: Financials/Shareholder Value, Business Continuity, and Risks. The data gathered that served as inputs in the framework came from industry leaders who have extensive experience in manufacturing relocation strategy. Their diverse backgrounds and experiences provided the basis for which the framework exists.