For technology and innovation driven businesses, low cost resources are no longer the prevailing factor for new investments in manufacturing. The availability of an innovating ecosystem is much more important than low cost suppliers.
After ‘Offshoring’ production to low cost countries in the nineties and ‘Re-shoring’ since 2005, ‘Next Shoring’ is what now drives decisions for new manufacturing locations. Katy George wrote a revealing article “Next-shoring: A CEO’s guide” in McKinsey’s quarterly of January 2014, and gave more background on the 2014 world manufacturing forum in Milan in july this year.
The factories of the future will be next to demand and next to ecosystems of innovating suppliers. This is where the competitive advantage is.
What does this mean for the CPO and his organization? How can and should they contribute to building this key asset? Contact us for an open and informal discussion about your context and what you could do as a CPO in a technology driven business. We will also talk about what works and how we are helping others.