Mexico Back in the Supply Chain Spotlight

Talking Logistics

It seems like we’ve come full circle with Mexico. A lot of companies set up operations and sourced from Mexico back in the 90s, then the focus shifted to China and other Asian countries, and now Mexico is back in the spotlight. What is it about Mexico that makes it an attractive trading partner again? economic recession made companies decrease inventories, which increased their need for speed to market and shorter cash-to-cash cycles.

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All Signs Point to Mexico Playing a Greater Role in Supply Chains

Talking Logistics

What do you think about Mexico? My short answer: What do your customers think about Mexico? For most 3PLs, their customers — across a variety of industries — are growing their presence in Mexico, either manufacturing there or growing their supplier base there, so 3PLs need to align their services and capabilities accordingly to the changing supply chain networks of their customers. Mexico mode…Freight moved by pipeline increased 11.4

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Logility and New Generation Computing Launch Supply Chain Traceability Solution Documenting Chain of Custody from Cotton Source to Importer of Record

Logility

Blockchain Allows Brand Owners and Retailers to Trace Source Materials Ahead of Pending U.S. In addition, we see broad applicability across many industries as consumers demand greater visibility and understanding of where products are sourced and manufactured.”.

The Pros and Cons: International and Domestic Sourcing

Unleashed

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. Let’s compare the strengths and weaknesses of both international and domestic sourcing options. International Sourcing. Reaping the benefits of international sourcing.

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

Talking Logistics

Con-way Freight Raises the Bar on Mexico Service, Adds Door-to-Door Tracking, 24-Hour Customer Resource Center, Enhanced Web Tools. Con-way Freight announced this week that it has enhanced its Mexico service offering with the introduction of real-time, door-to-door online tracking, a 24-hour Customer Resource Center and new web tools for tendering and managing shipments moving to and from Mexico.

Outsourcing: The Good, the Bad, and the Ugly – Lessons from Nortel Networks

NC State SCRC

” The BAD – “Back in the 90s a lot was going to Mexico. Nortel had a plant in Calgary, that had to be moved to Mexico. When they declared chapter 11 – they left Flex with $400M of inventory. That was surely developed on the foot of getting stuck with Nortel’s inventory! Business Process Outsourcing Design for Supply Chain Outsourcing Strategic Cost Management Strategic Sourcing Supply Chain Innovation Supply Chain Management

Keeping It Local: How Shorter Supply Chains Impact Supply Chain Planning

ToolsGroup

And this low cost fostered a mentality of incremental thinking with mid-level managers focused on squeezing out 1-2% a year in cost savings through sourcing, says Pete Guarraia of Bain consultancy. . The Economist says that more companies are sourcing with proximity to their major markets – for instance servicing the EU from Eastern Europe and Northern Africa or the US from Mexico.

What Is the COVID-19 Impact on Your Supply Chain? We Surveyed the Transplace Network.

Transplace

10% or less are in Canada, Mexico or Europe. Cutting costs and looking for alternative supply sources were also prioritized along with making new budget revisions to adapt to the changes in the global supply chain. Inventory and storage constraints. Depleted inventory due to customer demand. What Is the COVID-19 Impact on Your Supply Chain? We Surveyed the Transplace Network.

Confessions of a High Priced Expediter!

Supply Chain Game Changer

This time the disaster was in Mexico. The spreadsheet format I developed to track the status of each part was critical because it became the document of record and the single source of the truth. We focussed on establishing Vendor Managed Inventory programs and improving our Lead Times and Parameter Management. Ordering extra inventory is a stop gap solution which will cause other problems down the road. Subscribe Here! Email Address. Check out Part Shortages?

Supply Chain Risk Management: Could You Face a Category 4 Supply Chain Disaster?

Kinaxis

of east coast and Gulf of Mexico imports in September, according to an article from the Business Information Industry Association. This involved in some cases, diverting some inventory bound for other regions. The fuel supply chain could be one of many chains affected by a hurricane, especially if the hurricane threatens the Gulf of Mexico hampering the oil fields like Katrina did in 2005. Up to date inventory status.

COVID-19 to cause drastic shifts in supply chain management

EFT

In law firm Foley & Lardner LLP’s new report ‘Accelerating Trends: Assessing the Supply Chain in a Post-Pandemic World’ 70% of manufacturing executives expect their supply chains to move away from a focus on low costs and lean inventory.

Is Traffic Congestion Slowing Down Your Delivery During Peak Season? We Got A Solution!

Abivin

Image Source) 1. Globally, INRIX 2018 Global Traffic Scorecard shows that Moscow, Istanbul, Bogota, Mexico City and Sao Paulo make the top 5 in Global Congestion Impact ranking (INRIX Research, 2019). Image Source) 2. Image Source) A case is explained in Cairo Traffic Congestion Study when they calculated all of the component costs that directly related to traffic congestion in Greater Cairo. Image Source) 5.

The Transformation of Supply Chain Management – IoT, AI, & Blockchain

Oracle SCM

IoT has massive implications for supply chain management, including manufacturing, inventory management, and logistics. For Manufacturing – production managers can track output levels & yields of production across the globalized manufacturing base instantly – handy when you have hundreds of production lines spread throughout China, Mexico, and Turkey.

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How to Turn Your Supply Chain into an Innovation Engine | Guest Post from Erwin Hermins

Kinaxis

In the past, stores had to supply a wide variety of paint colors and finishes based on consumer demand estimates, building inventory and tying up working capital. The company’s product is highly configurable with long lead time components sourced from suppliers in Asia. The primary contract manufacturer builds their product in Mexico, within a one- to two-day delivery interval to customers in the U.S., But what if inventory was replaced with information?

Reflections on Hard Hats and Safety Shoes…

Supply Chain Shaman

As I work with teams to envision the new tomorrow, I find fewer people know the basic concepts of manufacturing planning–cycle inventories, freeze duration, slush period, bottlenecks and constraints. And, the service supply chain can be redesigned to have less inventory and more uptime. The time to service the equipment would be in hours versus days and the amount of inventory to provide the service would be greatly reduced.

The Massive Opportunity Waiting for Oil and Gas in Asset Disposition

Requis

12 trillion: the annual procurement spend by the Global 2000 (our estimate based on several sources, see image below). $3 The average holding cost for surplus assets and stored inventories is 20% of the book/fair market value.”.

Experts Discuss How to Streamline Global Supply Chain

Supply Chain Opz

Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. Reducing lead times from suppliers can help turn inventory faster, freeing up cash and ultimately satisfying customers. That might mean diverting from Los Angeles/Long Beach to Canada or Mexico. This increases flexibility and translates into less overall inventory since it is not in the wrong place.

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26 supply chain pros reveal the single most effective way to create a winning supply chain strategy

6 River Systems

In my experience, companies find themselves in difficulties with suppliers by either taking the cheapest quote looking for the one-off score (when that approach is not the best solution for the sourcing at hand) or by treating that supplier business as a subservient partner (in name only) even when the rhetoric espoused is we partner with our supply base. Cut inventory costs Be it a brick and mortar store or an online business, inventory is always present and it costs money.

Mitigating the Impact of the Coronavirus on Supply Chains with Machine Learning and Real-Time Visibility

BlueYonder

Lucky are the companies that can shift production to other countries like Mexico or Vietnam. With real-time visibility capabilities, customers can gain time to resolution to proactively identify issues deep in the supply chain, e.g. “where is my inventory,” and leverage ML-based recommendations to find alternate sources of supply and integrated execution capabilities to turn recommendations into alternate supply shipments.

Nearshoring & Reshoring Will Continue to Increase Thanks to these Main Benefits

Cerasis

It was cheaper than producing products in the US, manufacturers could produce large inventories with little capital up front, and consumers did not really have a public voice. made consumer goods, 4 of consumer goods manufactured in Canada, and 9 of goods from Mexico. manufacturers' decisions to reassess where they are producing or sourcing. Take a moment to think about offshoring.

How Can We Heal the Global Supply Chain?

Supply Chain Shaman

In the last six months, in my travels, I have presented to supply chain teams in China, Belgium, France, Germany, Peru, Mexico, Netherlands, South Africa, Singapore, and the United Kingdom. Inventory Turns. Better performance in inventory turns than the peer group average for the period of 2006-2015. If you trace the year-over-year pattern, you can see that P&G made progress on inventory turns and operating margin 2006-2007, 2009-2010. Today, I unpacked my bags.

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Seasoned Leadership in Action™ – An Interview with Chris Darbyshire, VP Operations at Softchoice!

Supply Chain Game Changer

I spent almost 20 years between IBM and Celestica primarily focused on Global Supply Chain, Global Operations and Inventory Management. Over my career I have established supply chains for global leaders like EMC, Cisco, HP and others in China, Europe, Thailand, Malaysia, Taiwan, Mexico and across North America. Now we have Supply and Demand Planners, Commodity Managers and Sourcing, Logistics not the shipping department, and Forecasting is now done by Supply Chain Data Scientists.

36 innovative companies re-inventing and rethinking supply chain and logistics

6 River Systems

In higher-traffic markets, Advance Auto Parts has “hub” stores that keep more inventory in-stock to give customers what they need when they need it. Bed Bath & Beyond is also implementing inventory reduction strategies and is on track for a 5% reduction year-over-year by the end of the current fiscal year. Foot Locker @footlocker Foot Locker makes it easy for customers to shop the way they want to shop by improving inventory visibility.

Letter from the CEO: Coronavirus Market Update

Transplace

Mexico and Cross-border. into Mexico by truckload and the increase of CPG export products from Mexico to the U.S., In the short term, the market is going to demand Mexican portion peak season surcharges to bring empty equipment from other regions or the border into the Mexico shipping points. Spot market rates are increasing for freight going from Mexico to the California, Washington, and Oregon areas. Letter from the CEO: Coronavirus Market Update.

The end of just-in-time?

EFT

Toyoda cut down on excess inventory, with components and spares only ordered when needed and kept in low numbers within the factories. Keep upstream suppliers on short notice to produce inventory as needed and watch the profits grow. Those upstream suppliers had to be as flawless as the just-in-time production facility, providing inventory or raw materials on time, every time. Overall “Global supply chains are having a ‘rethink’ on their sourcing models,” says Shetty.

Post-Pandemic Impermanence and 6 Actions to Take Now!

Supply Chain Game Changer

The move from China, even if to other more reliable-in-a-crisis countries like India, Mexico or Singapore, will come at considerable cost. Supplier managers and their work product – supply base sourcing strategies and cost-reduction initiatives – will have to constantly be on the lookout for events driving their suppliers’ businesses and pricing. Some will go out of business, be bought out or experience inventory rebalancing. Subscribe Here! Email Address.

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Day 3: Lenovo Goes About Creating the End to End Transparent Supply Chain

NC State SCRC

Planning and Execution (Howard) owns planning, inventory and production, with Logistics (Jerry) owning inbound and outbound. Managing inventory cost is always an issue, and it is often driven by a number of factors. So procurement will buy ahead, and work with suppliers to understand the situation in the market, and that may drive up inventory in one sector. When we are focused on inventory and Excess &Obsolescence (E&O) you know we are not doing well.

28 supply chain professionals share the biggest challenges of supply chain management

6 River Systems

All of the above (and other down-stream KPIs and processes) are heavily influenced by the accuracy of a demand forecast: if the demand forecast is much more accurate, a company is more likely to have the right product, in the right quantities in inventory and will have less of the products in inventory that is not required. Our supply chain involves a contract manufacturer, a third-party testing facility, warehouses to store inventory and a freighting company.

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

Talking Logistics

Amazon plans big expansion of online grocery business: sources ( Reuters ). percent for non-contractual shipments in the United States, Canada and Mexico. New functionality added to OzLINK Mobile – Customers can seamlessly manage work orders on mobile bar code scanners, managing inventory, assemblies, and kits. . Welcome to June.

SCRC Meeting – Tom Linton’s “Supply Chain Eight” and Golden Winged Warblers : Questions Every New CSCO Should Ask Their CEO

NC State SCRC

When it is not in motion, it is classified as inventory. But this took time – we had to “defrag” our supply chain, and eventually I learned we had 59 days of inventory. A simple chart was used to depict inventory, with the size of the indicative of the amount of cash tied up in that inventory. If the inventory was more than 60 days old (turns of < 2.0), than the box was red; 30-60 days, yellow, and less than 30 days, green.

Building Outside-In Processes

Supply Chain Shaman

On Monday, I would speak in Orlando Florida at the Terra Technology event; and on Wednesday, present the keynote at the Logistic Summit & Expo in Mexico City. It pains me to see nine out of ten companies are stuck at the critical intersection of cost and inventory turns. In a similar vein, their forecasts for the automotive market would have been on new automotive sales and dealer inventory. This weekend, I decompressed and turned off my cell phone.

Complex costs of transportation

Supply Chain Movement

To anticipate and respond to high customer demand, a modern Transportation Management System (TMS) needs to optimize inventory allocation. By consolidating at the source, several shipments can be combined into one, thereby reducing the number of shipments even before the shipments arrive at the Logistics Service Provider (LSP). A TMS with inventory allocation enables shippers to monitor shipments down to the package level. Mexico.

Spotlighting Import/Export Professionals!

Supply Chain Game Changer

But companies who fail to hire strategically for this role can face major bottlenecks along their Supply Chains, which can lead to inventory shortfalls and other risks. Avoid bottlenecks and lower risk in the sourcing process that can lead to inventory shortfalls. Now, with COVID-19, companies have to navigate new challenges – while also adapting to the Canada – United States – Mexico agreement (CUSMA), which replaced NAFTA and is now undergoing implementation.

Podcast: Rob Handfield on Suppliers, Data, Tech, and Talent

Requis

He is a consultant to Fortune 500 companies and US federal agencies, and a speaker with focus on the fields of strategic sourcing, supply market intelligence, and supplier development. On every screen there were moving graphical visualizations of material inventory. Tom had literally put his inventory on these control towers, and it was all updating in real time. In the post-COVID world, suppliers in the US, Mexico, and Canada will become much more integrated.

10 questions about the benefits of S&OP for your organisation

Supply Chain Movement

For one company the added value will lie in avoiding running below capacity and in reducing inventory while for another it will be the controlled scaling up of new products and services, but it always revolves around being able to anticipate and adapt the chain to developments in a timely and integral manner in order to achieve the strategic objectives. However, there must be consensus within the organisation about definitions and the right source of information for important reports.