Protectionism compared to Cost Benefits for Consumers
Both Reverse Logistics and Forward Supply Chains have a logistics component that is most efficient when produced near the consumer.
Every country should be able to produce products locally at a better margin than shipping the product from around the world. RLA encourages companies to manage their supply chain & reverse logistics to be as close to the consumer as possible, which will increase overall margins.
Years ago Americanís would purchase a car from overseas, today, those same cars are now produced in the USA. Why, you ask. Well the manufacturers realized that they could make more profits if they manufactured near the consumer. Look at the graph below, a comparison between 1981 to 2009 on the Cars made in the USA, the trends are completely logical. Protectionism causes tensions between countries, and doesnít benefit the consumer. Short supply chains reduce cost and allow everyone in the world to have a job.
Here are two examples:
Intel/Micron moved component fabrication production from India to Utah as a result of the supply chain & management cost.
Car manufactures have moved closer to the consumer in the USA.
Here is video that, in my opinion promotes country protectionism. The video is less than 4 minutes long.
Gailen Vick, Founder & Publisher
If you have any trouble viewing the video by clicking on image to your left please enter following address into your browser: http://www.youtube.com/v/4FrGxO2Fn_M#action=share