The toymaker's bold decision to serve Europe and Asia from the Czech Republic cut logistics costs by 20 percent. But bringing the new operation up to Western European standards wasn't exactly child's play.
Forget low-cost country sourcing as a strategy. Today, a comprehensive approach to procurement requires that companies also consider total supply chain costs and lead times. This means that the most profitable source may be close to home.
Small shipments can be costly and inefficient in China. A test of compact cargo containers shows how China's railways can improve shipment security while dramatically cutting transit times for small loads.