INTERPARFUMS LUXURY BRANDS, INC. (IP), a fragrance seller, is moving away from Chinese production. More companies surveyed by McKinsey are also working to manufacture goods closer to home.
IP is shifting much of its contract manufacturing out of China to the U.S. for products sold here. It doubled supplier contracts with U.S. companies and 70% of parts now come from U.S. suppliers rather than having to depend on Chinese suppliers for glass, metal and pumps. The company plans to have all such operations in the U.S. by 2024. Cheaper production costs in China are now out-weighed by factory shutdowns, supply snafus, higher transportation cost, rising cost of Chinese labor, higher tariffs and worries about intellectual property theft.
MOSIMTEC leverages computer modeling/simulation to help companies improve their supply chains. We also have significant experience in the fragrance industry. For a leading fragrance manufacturer with global operations, we developed numerous iterative models to represent existing/planned production lines to qualify equipment investments, validate process improvement initiatives and study feasibility of planned expansions. The models have been expanded to various global sites. MOSIMTEC’s supply chain simulations can help you future-proof your business.
#modelingandsimulation #digitaltwins #futureproofyourbusiness #perfumes #manufacturing