Bestshoring
Encyclopedia
Bestshoring is the process of identifying the best location to move manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...

, IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...

 or business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...

 processes for a company. The decision is to be based on quantifiable criteria which are intended to take subjective and political input out of the decision cycle
Decision cycle
Decision cycle refers to the continual use of mental and physical processes by an entity to reach and implement decisions.*Within the United States military, a theory of an Observe–Orient–Decide–Act loop has been advocated by Colonel John Boyd....

. Many companies use external consulting firms to make these decisions.

On August 1, 2004, Hillary Rodham Clinton
Hillary Rodham Clinton
Hillary Diane Rodham Clinton is the 67th United States Secretary of State, serving in the administration of President Barack Obama. She was a United States Senator for New York from 2001 to 2009. As the wife of the 42nd President of the United States, Bill Clinton, she was the First Lady of the...

 wrote an article explaining why bestshoring beats outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...

. Her argument is that "Foreign labor isn't as cheap as it seems."

External links

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