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tariffs on imports from Canada, Mexico, and China is impacting global trade networks, affecting industries ranging from automotive and electronics to agriculture and energy. auto parts are sourced from Mexico, making the tariff impact immediate and severe. Mexico and Canada have imposed 25% tariffs on U.S.
Companies leaning heavily on global sourcing? Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. Tariffs on steel from Chinaup 25%and retaliatory moves from Canada and Mexico may turn supplier relationships upside down. 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.
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. Companies relocating to Mexico may face rapid reversal in cost advantage if emergency tariffs are struck down.
Jorge Gonzalez Henrichsen and Joe Lynch discuss why China is moving to Mexico. Jorge is Co-CEO of The Nearshore Company , where he helps North American, European, and Asian manufacturing companies to successfully establish reliable manufacturing operations in Mexico. Jorge holds a B.A.
Bowman, SupplyChainBrain In the rush to adjust sourcing strategies in line with current trends in international trade, the answer might be to think small. manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. It could even entail some degree of domestic production.
What do you think about Mexico? It’s one of the most common questions I get these days from third-party logistics providers (3PLs), especially this time of the year as they’re finalizing their strategies for 2015 and beyond. My short answer: What do your customers think about Mexico?
The law will apply to tickets purchased in Minnesota or other states for concerts or other live events held in Minnesota. And now on to this week’s logistics news. Robotic arms Robin and Sparrow were designed and manufactured at its Robotics Innovation Hub near Boston and help sort customer orders. imports from Mexico rose 3.8%
And now on to this week’s logistics news. based carrier’s role in Mexico as nearshoring manufacturing trends drive more cross-border trade. Based in Mexico City, Estafeta handles both packages and larger freight shipments and delivers domestically in Mexico and across the border with the U.S.
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.
After 10+ years of writing the weekly news roundup, as well as a bi-weekly column for Logistics Viewpoints, today is my last day at ARC Advisory Group. Over these 10 years+ I have learned a lot about supply chain and logistics through conversations with end users, suppliers, and my colleagues. and Mexico, according to the notice.
And now on to this week’s logistics news. As a first of its kind agreement in the US, FedEx Express will develop plans to test Elroy Air’s Chaparral autonomous air cargo system within the company’s middle-mile logistics operations, moving shipments between sortation locations. Amazon workers in Staten Island vote to unionize.
Trade flowing across the United States-Mexico border has grown exponentially since the North American Free Trade Agreement (NAFTA) was enacted in 1994. In 2016, the value of goods traded between the two countries topped $525 billion, making Mexico the third largest trading partner of the U.S. Companies carrying freight across the U.S.-Mexico
And now on to this week’s logistics news. Costco has reintroduced purchase limits. Over 80% of oil output in Gulf of Mexico still offline a week after Ida. The funding will focus on manufacturers of the inputs used in COVID-19 vaccine production as well as facilities that fill and package vaccine vials.
As organizations look for reducing dependencies on concentrated sources of supply, Eastern Europe, Mexico, and South Asian countries will start providing viable alternatives to the current manufacturing powerhouse countries. As demand for last mile logistics intensifies, warehouses become the prime candidates for automation.
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.
Koganti urged the procurement audience to look for whats referred to as “foresight function” in planning tools, which is capable of enhancing data analysis, scenario generation and trend identification , allowing for more informed and proactive decision-making, albeit with human oversight.
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions.
ARC defines the warehouse automation market according to a number of qualifications and dimensions to deliver a well-defined measure, with numerous segmentations, allowing those that purchase the research to understand what is being measured, and to easily extrapolate the findings to support their strategic planning needs.
The logistics landscape is evolving rapidly as more manufacturers relocate production closer to domestic markets. For logistics professionals, understanding how these changes impact freight networks is critical to staying ahead. China trade tensions driving businesses to reconsider offshore manufacturing. Midwest U.S.
provides enterprise resource planning and other business applications for manufacturers. For example, it can look like imports from China are cheaper than the same goods imported from Mexico if a company is not relying on analysis produced by an advanced good global trade compliance (GTC) system. Adhering to trade law can be difficult.
Frasquet is the executive director of corporate procurement, although his responsibilities include a much broader set of supply chain responsibilities than just sourcing. Belcorp Corporation, headquartered in Peru, manufactures cosmetics and personal care products for women in 14 nations across South and Central America.
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.
In Part One of the series , Michael observed that standard sourcing solutions struggle in efforts to support direct materials sourcing because of specific challenges in the software design. He further established the case for why supply chain teams need to context integrated sourcing as well as procurement.
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.
The company engages in contract manufacturing services for companies. Then Jabil handles the sourcing and manufacturing of those products. Using a contract manufacturer allows companies to focus on their core competencies, which usually are not designing a product for manufacturing, production, or supply chain management.
Before FreightWaves, Anthony received his Bachelor’s and Master’s degree in Economics from New Mexico State University. Anthony’s clients varied from construction, trucking, industrial, software, manufacturing, and retail industries. The Logistics of Logistics Podcast.
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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?
Reported April 24 Over 60% of our business is from products that are manufactured, bagged, assembled or grown in the United States and only 12% of our business is direct imports. Recall, we purchased targeted additional inventory in late fiscal '25 and early fiscal '26, ahead of tariffs. A big thanks to you all for reading my articles.
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.
Find alternate supply sources for the material and goods that are outside the affected tariffs. tariffs on key imports and exports could impact manufacturing costs. Companies that rely on raw materials, auto parts, and industrial components from Canada, Mexico, and China may experience price fluctuations.
I went to Home Depot earlier this week to return a purchase, and the customer in front of me wanted to exchange a defective power tool with the same model, but he couldn’t find any on the shelf even though the store’s inventory system said 5 units were in stock. UPS Expands Logistics Reach To Meet Emerging Demand In China.
Con-way Freight Raises the Bar on Mexico Service, Adds Door-to-Door Tracking, 24-Hour Customer Resource Center, Enhanced Web Tools. XPO Logistics to Acquire 3PD, the Largest Provider of Heavy Goods, Last-Mile Logistics in North America. In this week’s news, new products and services and a couple of acquisitions top the list.
HarbisonWalker International Manufactures and Distributes Refractory Products. But refractories are used in a wide variety of industries, particularly manufacturing industries with high temperature or corrosive production processes. The sourcing centers are key to just-in-time, same-day, next-day deliveries.
A manufacturer in China doesn’t read the specs on an order. A supplier in Mexico mixes up two similar parts. What makes Ethereum different is that it actively encourages software development teams to use its open-source protocol to design tokens that run on top of the Ethereum blockchain. Supply chains are messy.
Even today when one reads the numerous articles about the benefits of manufacturing or assembling in Mexico, most of them highlight Mexico's low-cost labor and, of course, its proximity to the US market. But what does it all mean for those shippers and manufacturers that rely on cross-border trade between the two countries?
Logistics and Supply Chain – 1940 to 2040 with Jason Miller. Jason Miller and Joe Lynch discuss logistics and supply chain, 1940 – 2040. Jason Miller (PhD The Ohio State University) is a tenured Associate Professor of Logistics and the John D. Key Takeaways: Logistics and Supply Chain – 1940 to 2040.
Mexico may become the global manufacturing nerve center if the country plays its cards right. According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, Mexico ranks number eight out of 40 countries including Canada, Sweden, and Vietnam. Mexico has its share of challenges, of course. Looking Deeper.
The COVID-19 pandemic has pushed manufacturers to rapidly shift gears, from addressing work-from-home policies to managing extreme swings in demand and uncertain supply chains. In the process, it has highlighted an aspect of manufacturing ERP that is not as visible in more normal times— business continuity.
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?
Many of the states affected contained key ports and supply destinations, as well as transportation and logistics hubs. of east coast and Gulf of Mexico imports in September, according to an article from the Business Information Industry Association. These ports accounted for 18.3% container import shipments and 49.8%
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. However, commonly used KPIs used by supply chain executives are usually focused on logistics performance (e.g., 8) Arnold Maltz , Associate Professor at W.
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.
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