Final answer:
It is false that firms should focus only on low-value, high demand volatility products for onshore/near-shore sources. Sourcing strategies should be tailored based on product value, demand volatility, and lead times, which can include a mix of onshore, near-shore, and offshore sourcing.
Step-by-step explanation:
To answer the question, it is false that firms should use responsive onshore/near-shore sources to focus only on low-value, high demand volatility products. On the contrary, onshore or near-shore sourcing strategies are often leveraged for high-value products that require rapid market responsiveness due to higher demand volatility.
For low-cost production with less demand uncertainty, firms may use offshore sources to benefit from lower labor and production costs. One of the core advantages of near-shoring is reduced lead times and greater flexibility in supply chain management, which are crucial for high-value items that need to respond quickly to changing market demands.
Therefore, sourcing strategies must be tailored not just based on costs, but also based on product value, market demand volatility, and the criticality of lead times. This multifaceted approach can include a mix of onshore, near-shore, and offshore sourcing that aligns with the company's overall business objectives and competitive strategy.