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Cassimir Medford

SaaS-ERP Pioneer Plex Gains $30M

Cassimir Medford
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batye
batye
1/1/2013 3:23:00 PM
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Re: Made in the USA
you are right Cass, I just hope "US manufacturing has been on the rebound" will rebound it way towards Canada just a bit... :)  as what ever happens in USA always have effect in Canada... what ever we like it or not... we are have a  strong bond...

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Cassimir Medford
Cassimir Medford
12/27/2012 2:33:34 PM
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Re: Made in the USA
Right. Add the Fed monetary policy and the weak dollar and you understand why US manufacturing has been on the rebound. And it's not limited to heavy industry either. It's across the board.

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William Terdoslavich
William Terdoslavich
12/27/2012 1:27:58 PM
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Re: Made in the USA
Let's not forget location, location, location. US manufacturers are close to US customers, so there is no lag between communication and action. 

Many thought that outsourcing to Asia allowed for 24-hour operations--US design team woulld send instructions to Asian factory, which would work while the Americans slept. Feedback would go to the US as the Americans ate breakfast. Oftentimes, the result was miscommunication and misunderstanding, requiring the dispatch of someone from the US to go to the factory and explain what was meant. 

Then there are transport costs. You want to ship it across the pacific? Pay the fuel bill and the extortionate salaries of the unionized longshoreman unloading your containers. If you make it here, that problem goes away. You are just trucking product after a phone call in the same time zone with a customer who speaks English. 

Then there are wages--they haven't gone up relative to inflation for about two decades here in the US. That's bad for the working class and middle class, but inadvertantly gives them a cost advantage now that wages are rising in Asia, once you subtract the costs of miscommunication and transport. 

Now add the US comparitive advantage in IT. The package starts looking sweet. 

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Cassimir Medford
Cassimir Medford
12/27/2012 11:16:16 AM
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Re: Made in the USA
The US manufacturing industry is like a patient that just came out of a coma. It needs a period of rehabilitation which SaaS could offer. It will take a while for other countries to get the whole SaaS market thing right. SaaS has gained a lot of traction in the US so there is a short period where smaller US manufacturers may be able to gain some cost advantages. Ultimately, however, the main advantage of US manufacturing will take precedence: quality and quality control.

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Taimoor Zubair
Taimoor Zubair
12/26/2012 4:14:34 PM
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Re: Made in the USA
"efficiency and technology will make up the difference so the overall cost is lower compared to the value"

@jagibbons: Apart from these, one other way to reduce is through innovation and automation. This is where the role of robots may come in to replace manual labor. This may be one of the ways of reducing costs and competing with the rest of the world.


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Taimoor Zubair
Taimoor Zubair
12/26/2012 4:09:01 PM
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Re: Made in the USA
I agree with the discussion here. SaaS is one of the ways companies can reduce their technology costs and hence the overall overheads to reduce the cost of production. And of course with lower costs, they might be able to give a boost to the manufacturing industry in the US. However, I wonder what happens when international companies also start using SaaS-based software? Does the US still get to maintain the cost advantage? Surely you can't restrict the use of SaaS to only US companies.

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batye
batye
12/24/2012 10:51:44 PM
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Re: Made in the USA
I trust SaaS/Cloud is already a winner... it just good acounting need provide correct numbers to show true savings...

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batye
batye
12/24/2012 10:49:31 PM
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Re: Made in the USA
agree, sometimes trying to save now could affect long term... as with technology growth... balance must be taking in the account...

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Pierre DeBois
Pierre DeBois
12/23/2012 12:06:24 AM
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Re: Made in the USA
jagibbons,

That also makes a huge statement about chasing the lowest cost - yes, it's important but is the juice worth the squeeze? Not every time. The right application of Saas can be combined with a near-low cost to create a new set of strategic advantage for a company.  A dollar can not always be trumped - sometimes it is about the capacity to manage it.

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jagibbons
jagibbons
12/22/2012 10:33:26 PM
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Platinum
Re: Made in the USA
Since labor costs will almost always be higher in the US than many other parts of the world, efficiency and technology will make up the difference so the overall cost is lower compared to the value. SaaS helps make that possible.

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