Best-Cost vs. Least-Cost Sourcing

Talking Logistics

A month later, Walmart announced that it will increase its sourcing of US products by $50 billion over the next 10 years. Kevin discusses three factors that are helping to drive the reshoring trend, but the one that caught my attention the most was how companies are shifting their focus from least-cost sourcing to best-cost sourcing. One is the thought process around best-cost sourcing versus least-cost sourcing.

Global Manufacturing Outlook 2013

SCM Research

The Economist Intelligence Unit’s Global Manufacturing Outlook 2013 , written on behalf of KPMG, is out now. It is based on an international survey of more than 300 senior executives from five industries. The report demonstrates that competitive advantage can be secured by enhancing supply chain networks for efficiency and innovation.

Global 120
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

How Many Slaves Are in Your Supply Chain?

Talking Logistics

Coincidentally, at the Ariba LIVE 2013 conference yesterday, I attended a presentation by Justin Dillon, Founder and CEO of Made in a Free World , a nonprofit group that is “building a coalition of consumers, businesses, and governments to disrupt the system of slavery.” The collapse of the garment factory in Bangladesh last week , which killed at least 705 workers and injured thousands of others, has put a spotlight on a problem that plagues many supply chains: the use of slave labor.

This Week in Logistics News (June 3-7, 2013)

Talking Logistics

In this week’s news… UPS Freight Announces 2013 Rate Adjustment. Cass Freight Index Report for May 2013. Amazon plans big expansion of online grocery business: sources ( Reuters ). The rate adjustment will take effect on June 10, 2013, and applies to minimum charge, less-than-truckload (LTL) and truckload (TL) rates, and accessorial charges.”. Rates have still remained quite flat as they have most of 2013. Welcome to June.

This Week in Logistics News (October 28-November 1, 2013)

Talking Logistics

Reports 2013 Third-Quarter Results. Con-Way this week reported 2013 third-quarter net income of $30.6 One of my predictions for 2013 was that we would see increased adoption of alternative fuel vehicles. Source: Presentation by Bill Lee, VP at Breakthrough Fuel. Tweet The post This Week in Logistics News (October 28-November 1, 2013) appeared first on Talking Logistics with Adrian Gonzalez.

This Week in Logistics News (July 15-19, 2013)

Talking Logistics

SAP Announces Second Quarter and First Half Results 2013. Source data is a combination of reference and benchmark data from third parties as well as econometric models and formulas. Here are some additional details from the press release: 3PD reported year-over-year growth in adjusted EBITDA1 of 20 percent and 36 percent for the full year 2012 and the first five months of 2013, respectively; and trailing 12 months revenue of $319 million through May 31, 2013. .

Responsible Sourcing Insights

SCM Research

Sedex is a nonprofit organization dedicated “to driving improvements in ethical and responsible business practices in global supply chains” Their new six-part “Responsible Sourcing Insights Films” series tackles key challenges in responsible supply chain management.

This Week in Logistics News (April 15-19, 2013)

Talking Logistics

In the meantime… SAP Announces First Quarter 2013 Results. SAP reported that total revenues and net profit increased 7 percent and 17 percent, respectively, in Q1 2013 compared to Q1 2012. Speedy Route incorporates Google Directions in its results, and uses portions of the Open source software OpenOpt to help calculate the optimal route. Tweet The post This Week in Logistics News (April 15-19, 2013) appeared first on Talking Logistics with Adrian Gonzalez.

Boston 137

This Week in Logistics News (February 18-22, 2013)

Talking Logistics

As I highlighted in my supply chain and logistics predictions for 2013 , tablets and smartphones are quickly becoming the preferred computing platform for business professionals, which is why technology providers are designing and optimizing their applications for these devices. Transplace delivered more than 50 customer solutions in 2012 using the CombineNet sourcing technology, in industries including consumer goods, chemicals, manufacturing, and retail.

Mexico 100

Ariba: At the Intersection of Social and Business Networks

Talking Logistics

Last week at the Ariba LIVE 2013 conference, I led a discussion session titled “At the Intersection of Social and Business Networks” with about fifty senior executives in supply chain and procurement. The most interesting part, however, is how Ariba is integrating its online user community ( Ariba Exchange ) into its user interface and leveraging it as another source of network intelligence.

7 Megatrends Supply Chain People Should Watch

Supply Chain Opz

Background Expert opinions appear to be the most important source of information for a trend prediction. 5) Industry is blurring : technology alone is rarely a source of competitive advantage but it''s the combination of technology and the new business model. Current logistics and supply chain management trends are discussed very often on social media sites. How can we identify them really? This article will show you some trends in the past and reveal what the future holds.

7 Supply Chain Tips from Superheroes!

Supply Chain Opz

In private sector, robust strategy means something that works under any circumstances, for example, part standardization and multiple sourcing. Supply chain management is everywhere and even the superheroes can give you some lessons! In this article, we will explain to you who are the real-life superheroes and what we can learn from them. Background Supply chain management has gained more recognition from businesses as the strategy that helps to increase revenue and improve services.

2013 Third-Party Logistics Study

Supply Chain Movement

The success of the third-party logistics industry is evident in the generally high marks given to 3PLs by respondents to a survey as part of the 2013 17th Annual Third Party Logistics Study, which identifies trends and explores how both 3PLs and shippers are using these relationships to improve and enhance their businesses and supply chains. 3PLs and shippers each see themselves as the largest sources of innovation within their relationships.

Supply Chain Talent: The Missing Link in Your Future?

Supply Chain Shaman

It is the sourcing and development of mid-management talent. Today, I finished up a report on supply chain talent. After doing the analysis of the results, I even more firmly believe that supply chain talent is the missing link in the supply chain. In figure 1, I outline the company’s biggest gaps. YOWZA! It is large. Figure 1. Isn’t this ironic?

7 Supply Chain Transformations at SAMSUNG

Supply Chain Opz

Today Samsung Electronics has proven to be one of the most successful global brands to follow. In supply chain management context, they has demonstrated the operational excellence that leads them to the supply chain hall of fame. In this article, we will explain to you how they do it. Background "Samsung" in Korean language means "3 stars" or "tri stars". At first, they had a strong root in trading business.

What Do We Do Now?

Supply Chain Shaman

” Supply chain planning roles have the largest number of vacancies with the longest time to source. Supply chain talent is a growing gap for leaders. The impact is great. The biggest issues are in mid-management roles. Let’s examine some of the facts from recent research. Today, 60% of companies have open positions. Fifteen percent of the planning positions are open for an average time of five months.

Is Apple Supply Chain Really the No. 1? A Case Study

Supply Chain Opz

Apple Inc purchases raw materials from various sources then get them shipped to an assembling plant in China. Some components are currently obtained from the single or limited sources. NAVIGATE. Basics. Case Studies. Graphics. All Posts. About. Copyright. Privacy. Blogroll. Is Apple Supply Chain Really the No. A Case Study.

Chief Analytics Officer Conference 2013: A brief history of Big Data analytics according to Tom Davenport

Supply Chain View from the Field

Given this genomic data and complex large unstructured data sources, a new role called the Data Scientist began to emerge. I had the opportunity to attend the CAO conference in Chicago this week where I sat on a panel discussing the topic “Creating an Analytics Culture.”. The session was kicked off by Tom Davenport, the recognized ‘guru’ of analytics who has written several books and many articles on the subject.

Supplier Collaboration

LeanCor

Lean teaches that quality at the source (getting things right the first time) prevents waste. Supplier Collaboration: A Critical Requirement. Supplier collaboration and the resulting improvements are critical requirements for implementing lean flow across the entire supply chain. Many companies recognize this, but question how to go about creating supplier collaboration, especially how to start the interaction.

Lean 196

Emerald Citation of Excellence 2013 for supply chain innovation article

Supply Chain View from the Field

I learned today that one of the articles I published with colleagues from the University of Tennessee, Oxford University, and Manchester University was cited for the 2013 Emerald citation of Excellence award. As papers need at least three years to accumulate citation data, the 2013 Awards have been selected from papers published in 2009. A full list of the 2013 winners, as well as lists of previous winners, is available at: [link].

7 Rules of Fashion Supply Chain Management

Supply Chain Opz

5) Keep production in-house : Zara tries to stay away from low-cost country sourcing and make an investment in the in-house manufacturing as much as possible. Fashion industry is one of the most primitive form of supply chain management and its practices have been extended, adopted and become the best practices that we use today. This article will show you the development of fashion industry and how one company manages to bring the operations into the next level. Fashion SCM 1.0

Lean Warehousing

LeanCor

The next principle is quality at the source. Lastly, we focus on quality at the source and error-proofing processes. Standard work and quality-at-the-source go a long way to accomplish these things. Additionally, by focusing on quality-at-the-source, we will reduce the number of defects to the end customer. Lean Warehousing – From Paradox to Operational Excellence.

Lean 186

Public Markets Reward Supply Chain Alignment

Supply Chain Shaman

The year 2012 marked the 30th anniversary of the use of supply chain management as a cross-functional process for source, make and deliver in the commercial sector. This work will continue throughout the summer and culminate in the release of the Supply Chain Index for 36 Industry Sectors at our Supply Chain Insights Global Summit at the Phoenician in Scottsdale, Arizona on September 11-12, 2013. Today, I am proud to launch the Supply Chain Index.

Supply Chain Management and Bioinvasion

SCM Research

2013), recently published in Ecology Letters, discusses the risk of marine bioinvasion caused by global shipping. Particularly, they identify “high-risk invasion routes, hot spots of bioinvasion and major source regions from which bioinvasion is likely to occur” In sum, their model reveals a new aspect of ecological responsibility in supply chains. 2013).

Remembering Ronald Coase (Dec 29, 1910- Sept 2, 2013)

Supply Chain View from the Field

It is true that with the rise of global sourcing, the internet, and globalization of supply chain networks, transaction costs have indeed fallen. Ronald Coase passed away this past week, at the ripe old age of 102 1/2. He represents one of the truly brilliant economists who helped shaped our understanding of management enterprise. Coase took on the challenges of management and the evolution of the modern firm, and was awarded a Nobel prize for his work.

Toward a Theory of Supply Chain Management

SCM Research

2013), titled Toward a Theory of Multi-Tier Supply Chain Management , might bring us one step closer to such a theory by taking into account that supply chains have become more complex, more fragmented and longer. This piece of research, which is based on an inductive case study research design, hands theory-testing researchers interesting propositions on a silver platter: First, depending on the supply chain position, the members of the supply chain draw power from different sources.

Supply Chain Management

LeanCor

Therefore, even while inputs might be gathered from the same source, the final product can be differentiated and so can the services provided to that favored customer. Supply Chain Management: Bigger Picture, Bigger Gains. Beyond the management of physical inventories and information in the domain of logistics is the way that products are developed, marketed, and sold. Add in the relationships formed with suppliers and customers and you have supply chain management.

Guest Commentary: Have You Black-Friday-Proofed Your Supply Chain?

Talking Logistics

Skip the distribution center : Like many retailers, you probably source many of your products from overseas. It’s a rite of passage for the most serious of shoppers. Black Friday. It conjures up images of long lines of intrepid bargain-hunters camped out overnight. Stampedes when the doors open. And frenzied crowds ready to drop-kick their way to door-busting prices on the year’s hottest products.

What Makes a Mature Planning Organization? (Part 2)

Supply Chain Shaman

It combines decisions across sell, deliver, make and source processes to drive value based outcomes. Yesterday, I finished a post on supply chain planning maturity. A client had asked me, “How do I know if we have a mature supply chain planning organization?” ” As we talked, and I drew the table, the first question was followed by, “How do I help my executive team understand the importance of planning and their role in the process?”

7 Supply Chain Cost Saving Ideas from SpaceX

Supply Chain Opz

2) Keep product design in-house : Musk knew from the start that the product design is a very critical mission because it dictates type of materials, manufacturing processes and source of supplies. During the period of slow economic growth, many manufacturers have to deal with the cost pressure. Because customers are calling for prices to come down. In this article, we will explain to you 7 cost saving ideas that you can learn from the space program.

Third Party Logistics Services

LeanCor

A second source of improvement is financial performance. The Unseen Supply Chain. As consumers continue to buy record amounts of products, there is a largely unseen and unappreciated aspect to business that remains in the background. The process of getting the right product to the right customer at the right time is the job of effective logistics. Every company that produces a product for consumers or other businesses must deal with the issue of the supply chain, or logistics.

Training for the Next Triathlon. Insights for You?

Supply Chain Shaman

Likewise, in today’s supply chain environment, I find that supply chain leaders favor a single function of logistics, manufacturing or sourcing. I have never been an athlete. At the age of 58, I buried my mother in November 2012. She died of complications from Alzheimer’s disease. It was a long hard eight-year struggle that was tough on my family. One of the sad outcomes of the disease is that you don’t know how to grieve.

Talk Doesn’t Cook the Rice

Supply Chain Shaman

It will be launched during a webinar on April 25, 2013 and through a series of reports that will run in our May newsletter and throughout the summer. Selection of our Global Summit speakers: On September 11-12, 2013, we will be holding our first Global Summit. They will be digitally shared through Amazon, iTunes and other sources. We would love to hear your feedback and we hope to see you on our webinar to discuss the Index on Thursday, April 25, 2013.

A Moral Revision of Electronic Supply Chains (Guest Post by Bas van Abel, Fairphone)

SCM Research

In the first Fairphone that will be released in December 2013, conflict-free tin and tantalum from the Democratic Republic of the Congo has been integrated in the manufacturing of the phone, but that’s only a first step. He has set up projects such as the Waag Society’s Fablab and the Instructables restaurant (an open source restaurant). To make the supply chain more transparent, Fairphone opens up the entire system to understand what shapes our economy.

Thinking Differently About Procurement: The SCRC Meeting Theme on April 29-30, 2013

Supply Chain View from the Field

Sometimes the sources of value are right in front of us, and we need to be more aware of the obvious, and less focused on cost savings derived from price reductions. Global Supply Chain Strategic Sourcing Supplier Relationship Management Supply Chain Management Supply Market Intelligence Our next SCRC meeting will focus on “The Future of Procurement”, and will be held on April 29-30, at the NC State University Club in Raleigh, NC.