Strategic sourcing enters a new age. Are you keeping up? (Part 2)

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In last week’s blog , I began discussing telltale signs that you have entered the new age of strategic sourcing. Leading manufacturers have proven that best-in-class strategic sourcing can create measurable and sustainable shareholder value by contributing to top line growth and bottom line profitability. Improving costs remains a core competency for any sourcing organization. Financing, hedging, and currency plays. The post Strategic sourcing enters a new age.

Five Tips on Sourcing Products From China

EMERGE App

Google a phrase like “sourcing products from China” and you’ll instantly be faced by almost 39 million results! You need to source for products to sell at wholesale prices to your retail customers. And the place to source for most, if not all, of your products is in China. This blog post doesn’t aim to be the ultimate guide to sourcing goods from China. Things like handling multiple currencies when dealing with suppliers and purchase orders.

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Sorting out Risk in FinTech Source Chains

NC State SCRC

But emerging technology is now beginning to create new ways to think about sourcing risk, which in the past has been a very manual, encumbered process. This has caused banks to look at the flow of activities in the “source chain”, which refers to the way that third parties use bank data for different opreations. Today, this end to end sourcing process has literally hundreds of different steps in the process. Let’s examine the source chain in more detail.

Materials as currency: Provenance tracks a fully-recyclable carpet on blockchain

Provenance

of all US landfill is carpet waste, resulting in 4 billion pounds of carpet not being recycled ( Source: GAIA ). The core purpose of this project is simple: Materials at the end of life have a tradable value – like a currency. One where carpets are designed for circularity, blockchain enables used materials to become valuable currency and a new world order ushers in transparency that reaps rewards.

How is technology transforming global sourcing ?

Claritum

Does your business source products and services from global markets? If your company is sourcing goods and services internationally you could be reaping many benefits. However, you could also face many challenges when globally sourcing across geopolitical boundaries. Without good visibility, maximising the benefits from global sourcing is impossible, as it is impossible to track exactly how much is being spent. Global Sourcing Technology.

Blockchain: A Single, Immutable, Serialized Source of Truth

Material Handling & Logistics

When many people hear the word blockchain, they immediately think about bitcoin and crypto-currencies, conjuring up images of hackers and black markets. Acquire the source materials: add a block. And so on, from source to end-customer receipt. Always Available: A Shared, Distributed “Source of Truth”. In fact, the distributed nature of blockchain adds additional value as it removes the entire concept of a central clearing house or source vendor.

Lost in Translation-Incorporating Consumer Demand into your Supply Chain

The Network Effect

A few years ago, a news report came out of China stating that they were going to put an end to pegging the renminbi (China’s domestic currency) against the U.S. This was a long awaited announcement that completely shocked the global currency markets sparking massive trades out of the U.S. dollar into Asian currencies. currency traders went into a selling frenzy. It’s interesting how a small mistranslation can drastically change the intended meaning of a word or phrase.

Supplier Financial Health: Don’t Wait for the Worst, Reach out and Talk!

Supply Chain View from the Field

Traditional methods of supplier risk mitigation involve diversifying risk, multiple sourcing, or switching suppliers, which are not effective in situations where entire regions, industry segments, or supply chains are experiencing financial distress. This is particularly of concern in emerging countries, where major shifts in economic conditions bank lending rates, or currency issues increase the likelihood of supplier bankruptcy.

Managing supply chains in a fragile environment

Supply Chain View from the Field

Gerard Chick and I had a good chat over skype this morning, and we both started jotting down a few facts… Banks are buying up gold and moving currency out since 2009. Forecasting Strategic Sourcing Supplier Relationship Management Supply Chain Management A friend suggests that the banks feel it is very unstable out there, and are hoping for some stability.

Biogen Idec designs the innovation supply chain

Supply Chain View from the Field

Supply chain has a big focus on the currency of today’s theories being implemented here. We used our existing facilities as currency and asked them if there was a need for you to make large molecule biologics? We built our muscle on supplier management and business cooperation, contract negotiation and sourcing. Joydeep Ganguly from Biogen Ide c spoke in my Supply Chain Relationships class last week, and shared his insights on how Biogen’s supply chain evolved.

Beyond Spend Analytics: Supplier Life Cycle Data

Supply Chain View from the Field

In sourcing, data must be tracked over the entire life of a supplier. Now think about millions of vendors, and different languages, different country codes, different product SKUs, and different currencies… This is making my head swim… This is going to take a lot more than a big Excel spreadsheet… Analytics Procure to Pay Strategic Sourcing Supply chain analytics Supply Chain Management

Top 4 Procurement Software Trends

EC Sourcing Group

For example, you may be using software for one aspect of your process (such as for analytics), but not for others, such as using eAuction software for procurement to improve sourcing. Blockchain is a type of digital currency system with a wallet style application.

Independent research reveals how organizations can succeed in a brave new tariff-driven trade world

Kinaxis

Navigating the latest tariffs, and the resulting ripple effects on currencies along with fluctuations in labor costs make it increasingly difficult for companies managing complex multinational supply chains to make effective sourcing, purchasing and production decisions fast enough to stay competitive.

Blockchain Comes to the Freight Industry

Supply Chain Brain

If you can convince a bunch of transportation neophytes who know nothing about freight that a [crypto] coin can become the currency of the industry, then you can raise whatever,” he says. What’s more likely to happen in the long run is that businesses will fall back on traditional currencies and “fiat-based smart contracts” to fund blockchain efforts, Fuller predicts. Global Trade Management Sourcing/Procurement/SRM SC Planning & Optimization Home Page Latest News Home Page Slider

Four Steps to Better Demand Forecasting

Logility

Better forecasting implementations relate to: Preparing data for analysis; Measuring data currency, coverage and accuracy; Understanding how order fulfilment impacts your forecasts; and. Measuring data currency, coverage and accuracy.

Bitcoin: A New Supply Chain Operating System?

Talking Logistics

I’m fairly conservative when it comes to banking (for example, I’m still not comfortable “depositing” checks using my smartphone ), so using a new digital currency, or “fake money” as my wife calls it, to buy stuff isn’t something that appeals to me, especially since bitcoin’s developer remains a mystery. But I read an article in this weekend’s Wall Street Journal – The Revolutionary Power of Digital Currency by Michael J. Source: [link].

System 208

An optimist’s view of Blockchain in supply chain: Learnings from Bitcoin

Kinaxis

This is quite fascinating considering the code behind Bitcoin itself is open source. Aside from the few countries that have banned the use of Bitcoin, its appeal is universal as you don’t need to continually exchange it into different currencies as the money crosses borders, making transactions frictionless and eliminating fees. Blockchain is here to stay: For any currency to sustain, those carrying and transacting in it should feel confident in its value.

Anti-Money Laundering Regulations for Cryptocurrency!

Supply Chain Game Changer

What served criminals as an icing on the cake was the fact that cryptocurrency is a decentralized form of virtual or digital currency. Subscribe Here! Email Address. Subscribe to Supply Chain Game Changer. Comparing the Most Popular Crypto Exchanges! Get Our EBOOK HERE.

What are Block Chains? – Jason Busch on the Future of Money, Trust and Transparency

NC State SCRC

Jason started out by discussing the fact that a company ledger is just a source of truth. Over the last few years the number of different sources of information has grown at a logarithmic rate, making it very difficult to synch systems across different parties: SAP, Oracle, JD Edwards, and all the different legacy systems. Most retailers and CPG spend time gathering data from sources to create a demand forecast for suppliers. Barter system led to commodity currencies.

Improving Global Freight Process Management

Talking Logistics

There are many reasons for this including a multitude of additional service providers, currency and language conversions, import and export compliance restrictions, a lack of supply chain data, and the confusing nature of working with and managing disparate technology systems across various global locations. It is a challenge to access and understand the various languages, city naming conventions, and currencies used by various vendors.

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Avoid “Lost in Translation”. Monetize S&OP to Include Finance.

ToolsGroup

One business, where finance was not involved in S&OP, was crushed by a rapid currency appreciation in the Swiss franc that made its products too pricey for the market. At a second firm, the CFO had factored that risk into the S&OP process, and the company weathered the revaluation by moving inventory abroad ahead of time and identifying sourcing options outside the currency zone. Finance speaks a different language than supply chain.

S&OP 81

Struggling with bespoke purchases?

Claritum

Bespoke requirements - key sourcing issues. Sourcing Bespoke requirements the right way. Sourcing of bespoke requirements needs to be managed effectively within an Organisation. Plus, the risk to a brand image from sourcing from unethical sources is an increasing problem for organisations. Inefficiently sourcing bespoke goods and services can waste a lot of time and energy. So, how can an organisation effectively source bespoke requirements?

The Messy Reality of Cross-Border E-commerce (Thoughts on UPS Acquiring i-parcel)

Talking Logistics

In addition to language and currency considerations, there are many other factors that come into play, including cost factors (duties, taxes, brokerage fees), customs compliance requirements (product classification, restricted party screening, import/export documentation), and complying with the address formats of destination countries to prevent delays and other issues with last-mile delivery. Source: Pitney Bowes (click to enlarge). Source: Amazon.com (click to enlarge).

5 key trends affecting the Consumer Package Goods industry

Kinaxis

b) Commodity price and currency exchange volatility – together they introduce increased unpredictability into the business and make managing shareholder expectations more challenging. These cross regional flows and increased sourcing options add to supply complexity. Emerging markets, while proving to be fertile ground for the growth of brands, are more recently under pressure due to softening economies amidst currency weakness and rising nationalism in the western hemisphere.

Improving Transportation in the Real World

Talking Logistics

Implementing a comprehensive audit, across all modes, geographies, currencies and languages, can achieve this data set. Audit is no longer just about rate or discount verification, credit recovery and timely payables; it is about carrier and regulatory compliance and identifying savings opportunities upstream in the sourcing, planning, and execution areas. Source. With a solution designed and determined, it’s time to source it.

Struggling with bespoke purchases?

Claritum

Sourcing of bespoke requirements needs to be managed effectively within an Organisation. Plus, the risk to a brand image from sourcing from unethical sources is an increasing problem for organisations. Inefficiently sourcing bespoke goods and services can waste a lot of time and energy. Bespoke purchases can be sourced from a variety of suppliers at vastly differing prices, quality and approaches to corporate social responsibility. Single source.

Blockchain and Supply Chain Analytics: Impact of Small to Large Supply Chains

Cerasis

This is an essential step in taking advantage of blockchain technologies, especially cryptocurrencies, which some consumers and supply chain partners will be using within the next few years as a primary currency. Blockchain’s ability to identify the complete history of a product, as well as analytics to denote problematic operating and shipping processes, can alleviate the concerns over a counterfeit product and ensure all raw materials and components are sourced properly.

Craig Reed from Dupont: Battle Tactics for Technology Innovation

NC State SCRC

He believes the cloud is very important for corporations to think about using multiple sources of touch points into Sharepoint, and other forms of integration into data. With a a merger comes expectations – the expectations is $3B of synergy from these two coming together – and a big expectation for procurement and sourcing. ” The big issues Dupont faces are oil prices, commodity prices, palm oil and currency.

Your supply chain is costing you money – Reason #5 Not having a supply chain risk management process

Kinaxis

If your supplier decides that you need to pay more or global currency exchange rates drive up the cost of a component (and you have no alternatives ready to go) your margins can be significantly impacted. Mitigating Risk – inventory tracking and dual sourcing are considered to be the most effective risk mitigation strategies. by John Westerveld Reason #5: Not having a supply chain risk management process.

Supply Chain Resilience is a New Imperative

Enterra Insights

For example, node and supply chain process vulnerabilities can be linked to single sourcing, single point of income, outsourced operations, technology reliance, energy reliance, foreign currency exposure or specific human talent.”[3] Cognitive technologies, like the Enterra Global Insights and Optimization System , can gather and analyze data from myriad sources, and can provide insights to decision-makers in a timely and understandable manner.

US Economy Still Growing But at Slower Pace

Material Handling and Logistics

currency. Chemical Products). -- "Production targets continue to be a struggle due to shortages of globally sourced components. ”Consumption, described as production and employment, continues to expand, with indications that labor and skill shortages are affecting production output,” said Timothy R. Fiore, Chair of the Institute for Supply Management.

8-Step Importing Guide For First Timers

EMERGE App

This should serve as a general framework to source products from different countries according to their strengths. We’ve got a great guide on sourcing products from China , for example. By the time you source, produce and receive the goods, the trend would have passed. Or you might need an interpreter if you’re sourcing from a country where English is not widely spoken. International Currencies & Taxes. Introduction.

Recommendations for Managing Supply Chain Risks and Challenges

Unleashed

Check whether it’s possible to source these products from alternate suppliers — potentially from different countries — who are not affected by the issue. You rely on sourcing from a low-cost country — sure they’re cheap but you may be risking currency volatility, corrupt governments, unexpected shipping fees and more. Globalisation means that our supply chains are more entwined and complex than ever.

Toyota and USPS See Opportunities for Blockchain Technology in Supply Chain Management

Talking Logistics

Source: “Blockchain Technology: Possibilities for the U.S. Furthermore, payment processing could be integrated directly into the shipping process — and paying in a digital currency would lower costs for online merchants and facilitate e-commerce while also allowing people without bank accounts to participate. Overview of Fluent Applications (source: Fluent website).

The Future of Procurement Is Upon Us. Are You Ready?

ivalua

Niul Burton wrote a great article in Industry Week titled “Procurement 2025: 10 Challenges that Will Transform Global Sourcing”. Burton predicts that China and Brazil will become hubs for global sourcing. Employing a collaboration solution that has multi-language and multi-currency capabilities now will build the infrastructure and talent pool you need for the future, today.