U.S. firm outsourcing/offshoring practices and plans : an update

Abstract

A study of U.S. firm outsourcing and offshoring practices and future plans regarding supply chain activities provides an update for supply chain managers. Specifically, the reported information provides supply chain managers of manufacturing/ merchandising firms with a competitive benchmark; facilitates third party logistics manager strategic planning efforts and provides an input to U.S. transportation planners who determine future transport and infrastructure requirements. The study reports the responses of 151 Chief Purchasing Officers from U.S. firms. Firms are benefiting from outsourcing logistics and production activities and over one-third of the firms plan to increase outsourcing spend. In addition, 60 percent of firms outsource offshore, and of these firms, 41 percent will increase their offshore spending, some by more than 50 percent.