Here are some ideas for business owners and managers here based on my firm’s unique (I believe) approach to sourcing: 

• Don’t start with the realities of a current manufacturing or service base (plants, vendors, equipment), instead start with what current and prospective customers want, and what your competitors are doing and drive your plan from there (separate short term need from long term goal) 
• For example, if a major customer is going to China and wants you as a vendor there, be careful and understand whether that customer can generate the type of return on investment you need to get to justify the investment 
• Determine what core strength you need to be able to beat your competition. For manyanufacturers in Ohio, that strength is not in manufacturing locally but is in service, design and management 
• Answer these questions like these about offshoring:  
• Are you lean at home (reduced direct labor)? 
• What’s the value of manufacturing near your customers? 
• There are many countries from which to source product.  If you choose China, be sure to use an expert who can sort through with you which region to choose, which factories are good and ones to avoid and can scout, lead and spearhead this time consuming and expensive effort 

The complexity and expense of outsourcing often results in savings being overestimated by 20% to 50%.  However, for most business owners in our area outsourcing is not an option but a requirement for survival in this decade.