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Companies leaning heavily on global sourcing? manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. In contrast, Apple demonstrated foresight by relocating portions of its iPhone production to Vietnam and India.
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.
On 1st and 2nd Dec LogiSYM held its Vietnam 2020 Digital event on a platform called AirMeet. Sponsors–CEVA Logistics, Cainiao from Alibaba and Zebra. Media Partners–CargoNOW, the Logistics & Supply Chain Management Society, Supply Chain Wayne, APAC CIO Outlook and Automotive Logistics. THE FEEDBACK.
While uncertainty persists across key markets, Maersk continues to provide stable, reliable logistics solutions across ocean, air, inland, and customs services. Export demand from Greater China remains soft, but markets like North East Asia and the Mekong region have seen rising volumes as sourcing diversifies.
Customer service, parts shortages, unprecedented inventory growth, and warrant management can actually take up internal sources and affect profit margins. Japan’s Nintendo also pulled out some of the portion of its video game production from China to Vietnam because of the ongoing trade wars. Source: Vietnam Briefing.
Vietnam, for example, increased its export volumes to the U.S. over May, indicating a shift in sourcing strategies. logistics infrastructure at certain volumes, continuous monitoring is essential. With China-origin imports constituting only 28.8% of total U.S. days, respectively.
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.
As sourcing demand shifts to Southeast Asia, FedEx launched a direct flight from Singapore to the US. According to FedEx, this route enables more efficient capture of volume from countries such as Vietnam, reflecting a broader strategy of targeting emerging trade flows from Asia to Europe and Latin America.
Mr. Bailey has worked most of his career at VF – as an industrial engineer in facilities, in strategic sourcing, running offshore operations, and now as the person in charge of the company’s entire supply chain. VFC’s supply chain sourced over 410 million units of apparel, footwear, and accessories in their last fiscal year.
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.
However, measures such as alternative factories, dual sourcing and more generous safety stocks go against the well-versed philosophy of lean supply chains that has prevailed in recent decades,” he says. Multi-Sourcing. The same computer intelligence can also be used to optimise the sourcing and onboarding of new suppliers.
These rapid changes are creating uncertainty for logistics professionals, procurement teams, and trade compliance experts who now must monitor updates almost daily. Tariff Volatility: The Ripple Effects on Transportation and Logistics Immediate Cost Impacts With duty rates rising, total landed costs are increasing fast.
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. Thirty-six percent of the shipments were shipped by entitles based in Vietnam. billion USD. Shipping Overview Exiger identified 13.1
I began to focus on the use of technology and strategy to help logistics companies tackle growing consumer demand – the new “need it now” culture. BluJay’s mission is to forge modern supply chains of the future and transforming traditional logistics – slow & unagile habits!
Transportation logistics software solutions play a key role in effectuating this change. The survey shows that a full third of companies with global supply chains intend to move their sourcing and manufacturing activities out of China in the next few years.
The topic/report will be on the logistics M&A so far this year. Reported May 20 Let me take a moment to comment on our global sourcing strategy. Today, more than 50% of our purchases are sourced in the United States. As a result, we now have tremendous sourcing flexibility. Look for another article later this week.
Global Supply Chain & Sourcing Director for ECCO Global Shoe Production & Sourcing. My projects in Malaysia, Philippines, China, Indonesia and eventually Vietnam, ranged from customer service and order fulfillment, shop-floor planning, inventory management, import/export and procurement.
One-third of respondents (33%) paused shipments entirely, while 29% are exploring alternative sourcing options outside of affected regions. Interestingly, while rates from China have declined, prices from Taiwan and Vietnam have remained elevatedlikely reflecting importers’ rapid pivot to alternative sourcing markets.
While they may not be able to benefit from the best procurement prices, sourcing products and materials closer to the end-market helps offset the rising transportation costs that make offshore resources less attractive than they used to be. This means that what Americans consider offshoring is actually nearshoring for us.
Visits to Vietnam , Singapore and Indonesia have featured itineraries that included meeting with governmental leaders, technology users, content providers and other groups. From a supply chain sourcing perspective, a consistent theme in media reporting has been exploration or hints for added Apple supply chain sourcing.
Brian Grass - Chief Financial Officer We also began dual sourcing more of our production and are now intensifying those efforts even further. We began to build out our internal Southeast Asia sourcing capabilities to accelerate supplier transitions out of China and in many cases dual source our production. billion to $1.6
Secondary markets like Vietnam and Turkey are also getting more attention. Bangladesh, Cambodia, and Vietnam experienced similar wage-related strikes and walkouts. Bangladesh, Cambodia, and Vietnam experienced similar wage-related strikes and walkouts. Will you make it yours? “It
Restoring More Direct Control in Materials Sourcing. Prediction Two of this year predictions indicated the following: Restoring More Direct Control in Strategic and Tactical Direct Material Sourcing Will be the Driving Force for Businesses and their Supply Chain Management Teams in the Coming Year. Mid-Year Assessment.
Figure 1: Identifying gaps in supply chain competency Overall Findings from three segments of industry were identified namely logistics, manufacturing and trading. The logistics industry is known for its cost sensitivity and customer-oriented approach.
In this article, Eytan Buchman, Freightos’ CMO, discusses the importance of data and context in global freight and logistics. As more data sources get legible, whether it’s container ship movements, eAWBs or carrier rates , it can have incredible ramifications. But even since July 2020, much has changed. And they are.
The alternative supply chain or “ Altasian” is defined as countries consisting of Japan, South Korea, Taiwan, India, the Philippines , Indonesia, Singapore, Malaysia, Thailand, Vietnam, Cambodia and Bangladesh. billion in population will be the linchpin of an alternative sourced Asian supply network. One example indicated was that U.S.
Tariffs are reshaping sourcing strategies, forcing tech upgrades, and making inventory planning a lot more complicated. For global businesses relying on real-time logistics and lean inventory models, the question is how prepared is your supply chain when tariffs hit? based cosmetics brand sources glass jars from Europe.
The topic/report will finally be on the logistics M&A through the end of May. Reported May 29 As we continue to navigate tariffs, we're implementing various mitigation strategies, including partnering with our sourcing vendors to reduce costs. Look for another article later this week. Reported May 29 Our predominantly U.S.
Such actions were to include mitigation of risks related to China based sourcing, which is now commonly referred to as a China Plus sourcing strategy. That was followed by a public acknowledgement from CEO Tim Cook that the company’s 60 percent sourcing of various production within the country was too much.
Supply Chain Matters highlights a published report indicating that PC maker Hewlett Packard is modifying supply sourcing akin to China Plus and nearshoring sourcing actions. That would include alternatives to China under the umbrella of either China Plus or de-risking sourcing changes. We pointed out that in 2022, more U.S.
There are many reasons why, as I’ve discussed in previous posts and Talking Logistics episodes , including: Supply chain data is stored in too many systems, in too many formats, across many companies and geographies. struck Vietnam. N single sourced parts with revenue impact $X-$YM each are manufactured at this facility.
Bridget McCrea ( @BridgetMcCrea ), a Contributing Editor for Logistics Management , explains, “With the pandemic entering year two, companies are retracing the steps they took in 2020 and finding more enduring ways to shore up their supply chains not only for the pandemic, but also with a longer-term view in mind.”[1] ” 3.
Consider other possible regional opportunities for the future (such as Vietnam, Bangladesh, etc.), Take the time to invest in yourself and consider taking online courses in the Supply Chain field, such as those offered by authoritative sources such as Supply Chain Canada ( www.supplychaincanada.com ). Sharpen the saw.
COVID-19 and the Future of China Sourcing and Manufacture. Many Japanese companies are already manufacturing in Vietnam. The Pros: Strong supply chain and logistics culture. But global dependence on Chinese manufacturing is mind-boggling…. Very regulated economy. Labour lacking skills in high-tech manufacturing. No export tax.
You’ll hear a lot of terms when people talk about sourcing goods for their supply chain. Three of the most common are outsourcing, global sourcing and offshoring. Now, Global Sourcing is where things get really interesting. You can think of these at three different strategies. Want a practical example?
Our solutions streamline logistics processes, resulting in improved productivity and reduced operational costs game-changers for distribution networks. Seedcom is the first company to implement the new retail model in Vietnam by applying breakthrough technologies to our business operations to create great experiences for customers.
The Ferrari Consulting and Research Group, via its affiliated Supply Chain Matters blog calls reader attention to two recently published research papers that address evidence of ongoing shifts in global supply component and end production sourcing. The above seems to imply, from our lens, the movement toward China Plus sourcing activity.
Brent Kirby – President Given the uncertainties surrounding current trade deliberations, we would not anticipate significant country of origin changes in our sourcing in the near term. As an example, in 2025, we will be relocating production of 500 toy SKUs from China to other sourcing locations. tariffs were enacted.
A modern system can analyze hundreds of thousands of data points from different sources and tell you precisely what you need to do to stay ahead of the curve. sources while others are reshoring their manufacturing operations. 6] James Burman, “ 7 ways to future-proof your supply chain ,” SHD Logistics, 1 March 2022. [7]
” 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. Unless the source of natural gas dries up, which is not likely for many years to come, the price of gas is likely to remain low for the foreseeable future.
This includes planning, sourcing, manufacturing, distribution, and delivery of products or services from the point of origin to destinations. It involves growing the beans in one country (like Brazil or Vietnam) and then the beans are blended and roasted in another country. Me : I work in supply chain. Granny : What, chain? ??:
The majority of the world’s coffee beans are grown in Brazil, Vietnam, Peru and Colombia, but can also be grown in other favourable, humid climates. Coffee retailers Campos Coffee source their beans from Kenya to Columbia to Brazil. Find out how they manage their complex supply chain with the help of inventory management software.
Business costs will rise for those who are sourcing some or most of their raw materials or goods from China. China, Thailand, Vietnam, Indonesia, and Malaysia produced Japanese branded goods. For example, Vietnam supplies replacement exports for frozen shrimp, leather goods, bags, and furniture. So, the inevitable will happen.
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