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Companies leaning heavily on global sourcing? Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. What Is Agile Procurement?
a leading global supplier of mechanical components for the manufacturing industry headquartered in Japan. The manufacturing and supply chain industries are rapidly evolving and increasingly volatile, fueled by shifts in global tariff and trade policy, geopolitical uncertainty, logistics disruptions, and technology developments.
The 25% tariffs on Canadian and Mexican imports and 20% tariffs on Chinese goods are expected to increase production costs, disrupt logistics networks, and force companies to rethink supply chains. auto parts are sourced from Mexico, making the tariff impact immediate and severe. Today’s escalation of U.S. More than 50% of U.S.
Automotive: Can JIT manufacturing survive legal disruptions to tariff policy? Automakers must model dual-path sourcing strategies and reintroduce buffer inventory—not just for parts, but for regulatory flexibility. Many Western pharmaceutical companies rely on India and China for APIs.
Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. In response, many organizations have shifted toward decentralized and regionalized supply chain models, distributing production and sourcing across multiple regions.
The election is over, but the race is just starting for logistics providers. From Amazon to hyper-local retailers, 2017 will be a year of intense scrutiny and pressure on logistics providers. Fortunately, your organization can get ahead of the learning curve by knowing what trends in logistics to watch for this year.
by Stephanie Krishnan – Associate Vice President, IDC Manufacturing & Energy Insights Asia/Pacific, IDC Asia/Pacific. “By By 2025, to improve long-term supply chain profitability, 60% of manufacturers in global supply chains will invest in software tools to support sustainability and circular economy business models.”.
Strategic rethink in supply chains With such a substantial shift in operating costs over the short and long term, as well as an increased risk of dislocation disrupting supply chains, businesses are reconsidering their strategies, with major implications for global manufacturing and sourcing.
Will the trend toward a return to “regional manufacturing” boost volumes in over the road transportation in North America as manufacturers move away from Asian overseas operations? Transportation logistics software solutions play a key role in effectuating this change. This strategy is not without its risks though.
The company was established in India as Asia’s first integrated private steel company in 1907. Today, the steel manufacturing leader has an ambitious digital transformation agenda and is leveraging AIMMS technology to optimize operations in its home country. Jamshedpur plant (image source: Tata Steel).
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
Major businesses have had to completely re-consider previous supply chain strategies that were largely centred around lean manufacturing, just-in-time delivery and reducing operating costs. Manufacturing Network Diversification. Multi-Sourcing. Inventory and Capacity Buffers.
Feature Article by Dr. Raymon Krishnan – President at the Logistics and Supply Chain Management Society. In extreme cases, firms simply state that a product comes from one country when, in actual fact, it was manufactured in a country that is impacted by the higher tariff being imposed. This practice is illegal. Postponement.
This is the first post in a two part series on the “Changing Face of Manufacturing.” ” We have many manufacturing shipper customers, and we love to create content of value for them on such subjects as best practices in logistics or trends around the supply chain. Drop in the price of crude oil.
Haifa port, which was privatized in 2022, is owned 70% by Indias Adani Ports while the remaining 30% is held by Israels Gadot Group. We have taken this proactive measure to safeguard our people, assets, and customers’ cargo in light of increased regional instability." Timely, incisive articles delivered directly to your inbox.
The regulation is designed to provide European consumers with extensive data about the provenance of the items they purchase, all the way back to the sourcing of raw materials. Time to Start Preparing for the Digital Product Passport SCB FEATURE Selling Into the EU?
The Supply Chain Matters blog provides commentary relative to July’s global manufacturing PMI indices relative to data indicating declining momentum, and some contraction among specific global regions. Morgan Global Manufacturing PMI® report, a composite index produced by J.P. Global Wide Production Activity. The July 2022 J.P.
In this week’s news… XPO Logistics to Acquire New Breed Logistics. Amazon to open five new warehouses in India (Reuters). XPO Logistics continues its roll-up strategy with its announced acquisition of New Breed Logistics this week for $615 million. Reports 2014 Second-quarter Results.
The Supply Chain Matters blog provides observations and additional information perspectives related to the 2025 State of Logistics report. Background and Summary Earlier this month, the Council of Supply Chain Management Professionals (CSMP) released findings from its annual State of Logistics research report. percent of national GDP.
82% of people have concerns that the supply chain will ruin life plans, such as birthdays, vacations, holidays, and the purchasing of necessary items. Material Handling & Logistics ). Material Handling & Logistics ). Source: Consultancy.UK. Image source: Fortune. Chain Store Age ). Chain Store Age ).
2013 Trends and Strategies in Logistics and Supply Chain Management: Embracing Global Logistics Complexity to Drive Market Advantage. The key results of this study by BVL International on trends and strategies in logistics and supply chain management are summarized, as follows. Key Trends.
As operations, maintenance, and supply chain leaders navigate a landscape shaped by rising asset complexity, volatile supply chains, and tight capital budgets, the pressure to optimize every part, every process, and every purchase has never been greater. Provides insights into supplier reliability to inform procurement decisions.
In respect to logistics and transport something remarkable happened at COP26. Subnational governments like Québec in Canada and Telengana in India as well as manufacturers and fleets like DHL, Heineken and Scania are endorsing the MOU and declared that they will align with the decarbonization effort.
For many years the predominant priority in sourcing has been finding the lowest cost possible. However the continuity of supply issues caused by the pandemic has created a call to repatriate much of this manufacturing into domestic, albeit higher cost, regions. What is the appropriate sourcing strategy going forward?
Businesses across APAC are gradually adopting AI and noticing clear benefits: Real-time visibility and better forecasting AI consolidates data from procurement, inventory, logistics, and fulfillment into one real-time view. About 30% believe AI significantly boosts productivity and cuts costs.
It’s easy to oversimplify the differences between sourcing for parts locally or internationally. When considering where to purchase from, the prevailing idea seems to be that domestic sourcing allows for better control and shorter lead time, but international sourcing is more cost-effective. International Sourcing.
to discuss vehicle customization by original equipment manufacturer (OEM) automakers and its impact on the supply chain of the future. And then there was a McKinsey article, which commented recently, that in the next four years, India would be the third biggest manufacturer , just lagging after China and the US. FM: Absolutely.
294 manufacturing facilities produced more than 90 million metric tons of food and beverage in 2021. Scope 1 emissions include direct emissions from the company’s owned and controlled sources. Scope 2 emissions are indirect emissions from purchased energy. PepsiCo has farmers they directly source from.
The utility that manages the main grid may be able to buy excess solar generation and may provide attractive power purchase options if the microgrid has a battery that can provide ancillary services, like frequency regulation, peak shaving, voltage control, power factor control, black start, or demand response. and India at 12.5
From early on in the Covid-19 pandemic , and for pretty obvious reasons , procurement in healthcare and pharmaceuticals has been in the spotlight like never before. Some 48 active pharmaceutical ingredients (APIs) vital to the pharma supply chain are sourced from the central province of Hubei.
Each tier, from raw-material providers to logistics firms, relies on predictable, timely cash flow. Consider a manufacturer waiting on a $70,000 payment that’s already 45 days overdue. Supply chains don’t operate in silos. When a business fails to pay its suppliers on time, that delay ripples downstream, affecting everyone involved.
Regulators including the Ministry for Industry and Information Technology recently addressed the issue of supply chain financing with the heads of major electric vehicle manufacturers on concerns the price war was becoming unsustainable.
The automotive and farm equipment manufacturing giant’s Spares Business Unit (SBU) witnessed lost sales revenues due to stockouts and tight working capital as a result of high inventory investment. Challenges. This assisted in achieving higher customer service levels and reducing operating costs. Real solutions. Expansive capabilities.
The newest additions to the list will impact industries sourcing critical minerals, cotton, and polysilicon used in solar modules from the Xinjiang Uyghur Autonomous Region (XUAR) of China. Strained Logistics Networks : Redirection of goods to alternative suppliers or regions. billion USD. Shipping Overview Exiger identified 13.1
SupplyChainBrain Container Ship Explodes, Catches Fire Off Coast of India More from this author Subscribe to our Daily Newsletter! Timely, incisive articles delivered directly to your inbox. Featured Product Popular Stories Watch: Why Choose FTZs to Mitigate Tariffs?
I’ve had the good fortune to be presented with opportunities for compelling discussions with a significant group of leading thinkers, senior executives in procurement, logistics, and technology management over this past year. With globalization, the need to partner with local logistics service providers becomes an imperative.
Customer service, parts shortages, unprecedented inventory growth, and warrant management can actually take up internal sources and affect profit margins. As a result of the intensifying battle, more and more companies announced plans or are considering shifting manufacturing from China. Source: Vietnam Briefing. Vestring et al.
The company was established in India as Asia’s first integrated private steel company in 1907. Today, the steel manufacturing leader has an ambitious digital transformation agenda and is leveraging AIMMS technology to optimize operations in its home country. Jamshedpur plant (image source: Tata Steel).
The latest data reinforces indications of a global manufacturing slowdown. Meanwhile there are building concerns of excess capacity, and other than lower-cost country production regions such as India, there are little signs of ongoing momentum. Global Manufacturing Output Global-wide manufacturing levels as reported by the J.P.
The August data further reinforces indications of a global manufacturing slowdown. Meanwhile there are building concerns of excess capacity, and other than lower-cost country production regions such as India , there remains little signs of potential momentum for the third quarter. This composite index produced by J.P. Consequently.
Global Manufacturing Output Global-wide manufacturing levels as depicted by the J.P. Morgan Global Manufacturing PMI® reportedly slightly declined in June with output and new orders indices on the rise. In the latter category, subdued market conditions were cited as an underlying factor in manufacturers’ business optimism.
Supply Chain Matters calls reader attention to a report by Bloomberg indicating that upwards of 14 percent of Apple iPhone production, equating to $14 billion, is now being produced within India. Background Throughout 2022 and 2023, we have highlighted for readers the various indications of Apple’s unfolding China Plus sourcing moves.
As part of our ongoing commitment to keep our blog readers updated on what’s happening in the supply chain and logistics world, we’re launching a regular industry news roundup, which we’ll release periodically. That spells big trouble ahead for food producers and agricultural enterprises reliant on such commodities.
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