Offshore sourcing Risks in Inbound logistics

This paper is report of investigation of positional risks in the international logistics In this project we are going to argue Offshore sourcing Risks in Inbound supply chain. We have excluded the outbound part of the supply chain for the sake of simplicity. As a result there won`t be any focus on risks for outbound operations e.g. market risks, customer based risks, etc. This effort has shaped around two main parts of risk management and Riskbenefit analysis. If we calculate the true cost of project, get adequate control over cost risk and truly quantify the future benefits; such decision making becomes reasonably feasible. As we experienced in this project, risk of not truly predicting the risk can be very significant. On the other hand it seems that companies which have to work in a JIT environment are very sensitive and vulnerable to offshore sourcing.

Keywords:

Offshore sourcing , international logistics , Risk-Benefit buying analysis