Someone needs to be able to measure what the annualized savings are from these moves. I can't, yet. Just for example, one of the articles in Italy says their labor costs are 20 cents a minute, to produce furniture in Romania, and 92 cents in Italy. But with the "subbing out" arrangement in Italy, labor costs will go down to 30 cents there. But, my impression is that will only be for the work that is brought back from Romania. Well, if such is the case, isn't that an INCREASE in costs?....increasing costs from 20 cents, to 30 cents?
It's all very confusing....although, on its face, it sounds like a good plan. I just can't tell yet.
Really, management should hold a CONFERENCE CALL to discuss this.