Forgive me for this bad play on words, but I just couldn’t help it after reading this story in a recent edition of eWeek on how N.C. Wants Dell to Repay Incentives for Closing Plant. It seems that Dell received over $300 Million in tax breaks and other incentives in exchange for opening its plant in Winston-Salem North Carolina 4 years ago and didn’t take that into account when they decided to close the plant. Now, North Carolina Governor Beverly Perdue is determined to ensure that the state gets “every red cent back that Dell has received”.
Just goes to show that you shouldn’t make any major supply chain decisions before you do a total cost model and consider all of the current, and future, implications of your decision.