Insourcing and the Supply Chain


We all know what Outsourcing is, but now a new trend is popping up: Insourcing. The definition of insourcing is simple but the ramifications are complex.
We recently wrote about agile manufacturing and used an example of General Electric’s historic Appliance Park (picture below) in Louisville, Kentucky — a plant that was on the verge of shutting down just four years ago. They are “re-shoreing” electric water heaters and when you look at the total system costs (including the supply chain), they will be cheaper than “made in China”.

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