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. And earlier this month, the Wall Street Journal published an article about how the toy maker K’Nex has moved most of its manufacturing operations from China to its factory in Pennsylvania. One is the thought process around best-cost sourcing versus least-cost sourcing.

What it's really going to take for sustainability to work [Sourcing Journal]

Sourcemap

I’m kind of pessimistic when it comes to sustainability, compliance, traceability,” Sourcing Journal president Edward Hertzman said speaking on a Texworld USA supply chain panel Monday. Read the rest of the article at Sourcing Journal.

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Universal Supply Chain Misconceptions or “Global Sourcing Lies”

ivalua

In a recent Sourcing Journal Online article, Sourcing is Hard , Mike Todaro, managing director of the Americas Apparel Producers’ Network, quotes Barbara Zeins, an industry expert that published a short list of “9 Big FAT Garment Lies,” which we might as well call “Global Sourcing Lies,” more generally. The post Universal Supply Chain Misconceptions or “Global Sourcing Lies” appeared first on Directworks. Blog Strategic Sourcing Supply Chain

Sustainability: Do Supply Management and Global Sourcing Matter? (Guest Post by Jury Gualandris, UCD)

SCM Research

Over the last decades, however, supply chains have been undergoing a process of increasing globalization, which has created the need for differentiated sustainability approaches for firms sourcing globally rather than regionally. On the one hand, traditional supply management based on supply base reduction and coordination will compensate global sourcing’s drawbacks, such as longer distances and socio-economic, cultural differences.

Technology Fuels Freight Logistics: Jeff Tucker in Wall Street Journal

DAT Solutions

Jeff Tucker 's guest column in yesterday's Wall Street Journal pointed to the pivotal role of technology, including DAT Load Boards , in freight logistics today.

A Tale of Two Procurement Books: Cox’s Sourcing Portfolio Analysis (Cox) & Strategic Sourcing in the New Economy (Keith et al.)

Supply Chain View from the Field

Andrew Cox’s new book “Sourcing Portfolio Analysis” represents the more traditional “power-based” view of procurement. The book relies on a series of prescriptive two by two matrices, that are further segmented into eight by eight matrices, that establish different typologies for supplier segmentation, The application of these frameworks to the universe of buyer-seller relationships I proposed (ostensibly) to lead to improved sourcing outcomes…for the buyer!

Emerald Literati Network Awards for Excellence 2015

SCM Research

and strategic sourcing ( Eltantawy et al. ). Research Supply Chain Management Article Journal AwardSome time ago, the winners of the annual Emerald Literati Network Awards for Excellence 2015 have been presented. Here comes a selection of this year’s outstanding papers related to supply chain management: First of all, it is noteworthy that several award-winning papers deal with sustainability; this includes papers written by Eng-Larsson & Norrman , Fabbe-Costes et al.

The Wisdom of the Crowd (Sourcing) Doesn’t Apply to Commercial Shipping

Supply Chain Collaborator

More than a year ago, the Supply Chain Collaborator blog examined the trend toward crowd sourcing and wondered aloud whether an “Uber for commercial shipping” was imminent. Clearly, sourcing for price alone leaves much to be desired and would not be acceptable for large volume shippers.

This Week in Logistics News (October 5-9, 2015)

Talking Logistics

Having spent much of this week on the road, I am still in catch-up mode with emails and phone calls, so let’s go straight to the supply chain and logistics news that caught my attention: Elemica Introduces New Sourcing Optimization Solution.

How Many Slaves Are in Your Supply Chain?

Talking Logistics

And as I highlighted last week, according to an article in the Wall Street Journal , “Wal-Mart Stores Inc.,

Addressing Labor Shortages in Warehouse and DC Operations

NC State SCRC

A recent story in the Wall Street Journal trumpeted that “ The job market doesn’t get much better than this. The shortage of workers is causing companies to look at non-traditional sources, including individual with a criminal record. The Journal cited the case of one individual who dropped out of high school in the 10th grade and started selling drugs, which eventually led to a lengthy incarceration.

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When You Focus on Getting the Best Deal Insead of Developing the Best Relationship

Talking Logistics

Earlier this week, Stephanie Gleason at the Wall Street Journal reported that “General Motors Co. And how can General Motors let this relationship with a single-sourced, critical parts supplier deteriorate and fail? Coincidently, Yossi Sheffi at MIT published a post on LinkedIn yesterday titled Second Thoughts on Second Sourcing that relates to the GM situation. General Motors sourcing strategy supplier relationship management Vested relationships Yossi Sheffi

Coronavirus impeding supply chains worldwide

USC Consulting Group

That was even lower than economists at The Wall Street Journal predicted, who anticipated a dip resulting from the disease’s spread. For as much as the novel coronavirus has saturated the headlines over the last month or so, several aspects of the contagion remains shrouded in mystery.

Truckers: Brother, Can You Spare a Parking Spot?

Talking Logistics

Here are a couple of charts I created based on data from the WSJ article that further illustrates the problem: Source: Federal Highway Association study. Source: 2013 Web survey of truckers conducted by Hope Rivenburg.

SCRC Innovation and Social Responsibility Supply Index: A Critical Input to “Drucker Management Top 250 List”

NC State SCRC

Research by NC State Poole College Professor Robert Handfield, director of the Supply Chain Resource Cooperative based Poole College, and Yung-Yun Huang, a recent graduate of North Carolina State University’s interdisciplinary doctoral program in operations research, supplied two of the 37 data inputs used in the Wall Street Journal’s inaugural “Management Top 250” ranking of companies, published recently. companies,” the Wall Street Journal reported.

Interview: Get ready for Supply Chain Outlook conference!

Supply Chain View from the Field

The Supply Chain Management Review, one of the leading practitioner journals in the field of supply chain, is hosting their first ever conference in November at the Rosemount Hilton at O’Hare Airport in Chicago. MBA Supply Chain MBA Supply Chain Programs Strategic Sourcing Supplier Relationship Management Supply Chain Management Supply chain Relationships Supply Chain Students Supply Chain Talent Management

"Surprises and disruptions are the name of the game in global supply chains"

Global Trade Management

With the data coming from the cargo directly, at the edge of the supply chain, arviem is independent from any data sources of any other party in the supply chain, that "aren't up-to-date" quoting Peter's article again. digital supply chain intelligent supply chain JOC Journal of Commerce real time monitoring supply chain visibility west coast congestionI just stumbled over an article from Peter T.

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The Ins and Outs of Manufacturing Around the Holidays

USC Consulting Group

According to The Wall Street Journal, in autumn 2017, Nintendo began ramping up supply chain processes for its new Switch video console, which had suffered from logistical issues, making it harder to acquire after its release date earlier that summer.

Procurement Comes of Age in Financial Services and Insurance

Supply Chain View from the Field

A recent article in the Wall Street Journal points to the increasing pressure being felt by financial services, as well as insurance companies. For example, a large insurance company recognized that they needed category specialists to understand the current state and provide advice to lines of business on sourcing options: “We had to hire an IT specialist to work with the IT group to assist in building their IT category strategy.

Post Award Contract Management with $40 Oil: Insights from Shell’s Kevin Fronk

Supply Chain View from the Field

Kevin and I worked together years ago to help define the a baseline framework for strategic sourcing and category management that was deployed within the Lubricants group, and which later became deployed across the entire Shell Procurement organization. This conversation was further clarified in my mind when I spoke with a journalist, from the Mexican journal Manufactura, about the importance of procurement in Mexico.

What is the return on ERP implementation? Results from our research

Supply Chain View from the Field

A research study published recently in the International Journal of Operations and Production Management by my PhD student, Yun-Yung Huang and myself, suggest that the data point to some interesting results. Segmentation, generally associated with strategic sourcing practices, is the basis for building sourcing strategies, which require an ability to negotiate prices based on leveraged volumes of purchases from across the organization.

ISBN, ISSN, and DOI

SCM Research

For example, the online ISSN of the Journal of Business Logistics is 2158-1592. A digital object identifier (DOI) can be used to uniquely identify content objects in the digital environment, i.e. journal articles. By the way, whenever I link to a book in this blog, I will extend the Wikipedia special page for book sources by the ISBN, e.g. [link]. Research Journal You probably know ISBN, which identifies a specific edition of a book.

Logistics Providers Shift Focus with the Rise of DTC

American Global Logistics

Sourcing Journal—Logistics brokers have been undergoing a steady metamorphosis in recent years, stemming from the influx of direct-to-consumer brands and the unrelenting rise of e-commerce. “We

Ultimate COVID-19 Supply Chain Resource Roundup

Freightos

Industry news sources like Journal of Commerce , Loadstar and FreightWaves also provide great coverage. Robinson , two other major freight forwarders are also great sources for updates across modes, with DB Schenker maintaining an updates page and C.H.

Future of Procurement Study Available

Supply Chain View from the Field

Fearon, “History of Purchasing,” Journal of Purchasing (February 1968): 44. [ii] Fearon, “History of Purchasing,” Journal of Purchasing (February 1968): 44–50. Strategic Sourcing Supplier Relationship Management Supply chain Relationships Supply Chain Talent Supply Chain Talent Management Supply Market Intelligence I recently completed a study of 25 CPO’s, each providing their view of what procurement will look like in 2025.

Study 60

Bo Andersson’s Supply Strategy Collides With Vladimir Putin’s Russia: The Performance Triangle Collapses

NC State SCRC

A story in the Wall Street Journal revealed that Bo Andersson, the current CEO of Russia’s largest car maker AvtoVAZ, plans to step down. I will note that when these principles were introduced on my visit to China with Shanghai Automotive in 2000, the Chinese were very receptive to the concept, and recognized the importance of competitive sourcing to drive cost, quality, service, and technology improvements. Automotive news seems to be coming up a lot lately.

Implications from the Rana Plaza Disaster (Guest Post by Brian Jacobs and Vinod Singhal)

SCM Research

The scale of this tragedy increased awareness of the risks and costs of sourcing from low-cost countries. Such risks and costs are often assumed to be sufficient to motivate firms to source production in developed, high-cost countries rather than developing, low-cost countries. To examine this assumption, we studied the stock market reaction to 39 global apparel retailers with significant sourcing in Bangladesh. Journal of Operations Management DOI: 10.1016/j.jom.2017.01.002.

$87.8B in Supply Chain Investments Captures VC Attention

American Global Logistics

Sourcing Journal—One sector that venture capitalists believe is ripe for change and disruption is supply chain logistics, where much of the trucking and freight sectors still relies on offline legacy processes such as manual booking and paper records.

An update on required ‘Conflict’ Metals reporting…

Operations and Supply Chain Management

A majority of companies whose filings were reviewed by The Wall Street Journal, including Walt Disney & Co., Global Sourcing Materials Outsourcing Purchasing Supply Chain Strategy Conflict MaterialsCompanies Detail Use of ‘Conflict’ Metals.

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10 things eft’s been reading this week

EFT

Health Services Journal]. States And Hospitals Are Sourcing Their Own PPE From China. How sourcing countries are reacting to COVID-19. COVID-19 crisis should push businesses to dual-source supply chains.

The Absolut Company: Balancing Service and Inventory Creates a Delicious Mix

ToolsGroup

A recent feature in The Wall Street Journal highlighted how Absolut’s modern approach to supply chain planning balances nicely with the company’s traditional production practices. 1 The Wall Street Journal “Absolut Mixes Machine Learning Into Its Spirits Supply Chain”, Paul Page, May 9, 2019.

Will Blockchain Lead the Next Technology Renaissance?

Logistics Trends and Insights

At last year’s Journal of Commerce’s LogTech conference, the definition and how to think about visibility was debated : “Visibility means very different things for shippers, freight forwarders, and carriers.” – Inna Kuznetsova, chief operating officer of 1010data.

10 Greatest Supply Chain Management Books of All Time

Supply Chain Opz

Therefore, the challenge to establish ranking method is to find more economical data source and unbiased metric. The content is good then people refer to it often (number of citations is also used to measure the importance of journal articles aka Impact Factor).

How Machine Learning Is Redefining Supply Chain Management

IQMS

Source: Machine Learning – A Giant Leap for Supply Chain Forecasting, Material Handling and Logistics Conference (PDF, 28 pp., Source: Machine Learning & AI in Transport and Logistics, Frank Salliau & Sven Verstrepen Logistics Meets Innovation Vlerick Brussels – Nov.

Transparency is the first step to securing global supply chains

SupplyShift

The abrupt shift in shopping patterns and demand for certain consumer goods and medical supplies compounded the problem and revealed the risk of maintaining small inventories through just-in-time sourcing.