Increased wages in CIVETS (China, India, Vietnam, Ethiopia, Thailand and South Korea) over the past 10-15 years have seen many companies which originally outsourced many jobs begin to see reduced profits. Outsourcing is quickly becoming uneconomical.
The complexity of supply chains mean that each component for a product covers huge distances. The increase in the price of oil has caused strain on shipping companies. If these companies put their prices up, the price for consumers is increased.
Large companies deal with supply chains which are so complex they can lose money very quickly. If there is 5% returns on a product then the company can see a loss on 50% in its profits.
The increase in consumer customization and decrease in time causes large problems for companies with little or no control over the entire SC.
For example, some products purchased online are now able to be delivered the same day. The time critical consumer now almost demands this service. Therefore a company dealing with only logistics (the movement and transportation of goods) cannot be flexible enough to deal with large changes to price and sourcing of materials.