THELASTMILE Logistics Outside the Box
MADE IN AMERICA? EARNING THE LABEL Companies can’t just slap this coveted label on to any product with mostly U.S. origins. Some savvy supply chain planning can merit the stamp. 71% The percentage of consumer demand that the United States meets with regional goods, according to McKinsey & Company, coming in behind the following countries: Germany (83%), Japan (86%), and China (89%). But “regional” does not necessarily mean “Made in USA.” 100% OR NEARLY 100% The Federal Trade Commission (FTC) defines “Made in USA” as “all or virtually all” the product has been manufactured in the United States. That means all significant parts, processing, and labor that go into the product must be of U.S. origin. Products should not contain any—or only negligible—foreign content.
$3.2 TRILLION T he total of U.S. goods imports from the world in 2022, up 14.6% from 2021 The top five suppliers of U.S. goods imports in 2022 are: China
($536.3 billion or 16.5% of total goods imports) Mexico ($454.8 billion) Canada ($436.6 billion) Japan ($148.1 billion) Germany ($146.6 billion) Source: Office of the United States Trade Representative
MEASURE YOUR WORDS “Made in the USA heritage” “Made in USA” “Proudly Made in USA” “1 of 10 products surprisingly still made in America”
These are the claims Illinois-based Instant Brands makes about its Pyrex brand. But the FTC says consumers shopping on Amazon, between May 2021 and March 2022, received Pyrex measuring cups made in China. In total, Instant Brands fulfilled more than 110,000 Amazon orders for Made in USA measuring cups with Chinese-origin products, incurring a $130,000 fine from the FTC.
Rounding up the companies throughout its supply chain was an effort that started in 2008 and has resulted in a present- day “beauty park,” consisting of 10 manufacturers and millions of square feet of production and warehouse space, reports The Wall Street Journal . The beauty park ensures assembled bottles enter its distribution network faster. The company also uses third-party
NEARSHORING SOLUTION IS A THING OF BEAUTY In a supply chain realignment years in the making, personal care and home fragrance company Bath & Body Works was able to convince its suppliers to move near its headquarters in Columbus, Ohio, to lather up production of Made in America products.
distribution centers, third-party-operated direct channel fulfillment centers, and pop-up fulfillment facilities, located throughout North America, to strategically position inventory.
Sources: McKinsey & Company; Federal Trade Commission; The Wall Street Journal
72 Inbound Logistics • August 2023
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