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To: magua
So they move their manufacturing to Vietnam Tennessee.

Fixed it.

29 posted on 05/12/2019 5:36:02 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va
So they move their manufacturing to Tennessee.

There is a lot of truth to this.

One of the facilities I run had a similar problem. Our “corporate” supply chain team wanted to shift one of our volume product to a Major supplier in Mexico they were looking to further develop.

The problem came when I pushed backed and wanted to see the total landed cost and the details of the costs in Mexico. While Mexico’s hourly labor rate was slightly below the TN facility, their overhead rate was actually higher. The net result was that TN was $0.19 cheaper per labor hour, and that didn’t include the shipping costs, or any potential risks.

38 posted on 05/12/2019 6:41:19 AM PDT by voicereason (The RNC is like the "One-night stand" you wish you could forget.)
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