Manufacturers trying to decide where to locate a facility, and not only in Mexico or China, need to take several costs into account, advises The Offshore Group, Tucson, Ariz. Here's its list:
The cost of intellectual property.
The cost of additional inventory of goods in transit over long distances.
The cost of additional safety stocks to ensure uninterrupted supply.
The cost of warranty claims.
The cost of engineer visits or resident engineers.
The cost of senior executive visits to set up operations and relationships with suppliers and managers.
The cost of out-of-stocks and lost sales caused by long lead times.
