Factory Destruction Across Vietnam: Supply Chain Sourcing Flexibility and Resiliency Has Never Been as Important

Supply Chain Matters

In the quest to seek alternative global low-cost manufacturing sourcing across multi-industry supply chains, countries such as Thailand and Vietnam were high on the list. The most visible has been Vietnam where this week, anti-China related violence has caused widespread rioting across the country, targeting factories and industrial parks that rioters believe are owned by Chinese interests.

Don’t Fret: Trans-Pacific Partnership (TPP) Agreement will not play havoc with the economic development of developing countries

The UCLA Anderson Global Supply Chain Blog

TPP is a unprecedented trade deal in history because it involves 12 countries (United States, Japan, Australia, Peru, Malaysia, Vietnam, New Zealand, Chile, Singapore, Canada, Mexico, and Brunei Darussalam), which accounts for 40% of global trade. (The Felipe Caro and Christopher S. Tang, UCLA Anderson School.

Trending Sources

Dr. Hau Lee on the New Supply Chain—and What to Watch Out for in TPP

Elementum

Nike manufacturers are based in China, Indonesia, and Vietnam. If the fabric is sourced in China but processed in Vietnam, will it count as being made in Vietnam? Welcome to the third installment of Supply Chain Spotlight, Elementum’s interview series.

Five Key Takeaways From JOC’s TPM 2016

Freightos

The world’s most popular route is still chock full of surprises, including: Vietnam has emerged as star exporter to the U.S., Five Key Takeaways From TPM 2016. For shippers, carriers and logistics providers, the JOC ’s TPM (Trans-Pacific Maritime Conference) is one of the must-attends on the annual events calendar. I caught up with one of Freightos’ delegates after the conference and scoured through the presentation material for insights.

The Changing Face of Manufacturing: How US Manufacturers are Looking Homeward

Cerasis

Starting from the early 1990s, North American and European manufacturers made a beeline to set up factories in China, India, Vietnam and other Asian and African countries where labor was dirt-cheap and the cash-strapped governments of those countries were more than welcoming.

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Needed: A New Way to Manage Risk in Low Cost Countries

NC State SCRC

By deploying the “fast fashion” business model, the apparel industry began to outsource garment manufacture to suppliers and subcontractors in low-cost countries, such as China, India, Vietnam, Malaysia, Pakistan, and Bangladesh. Nowhere are disruptions more prevalent than in Low Cost Countries (LCC’s), which have become the focal point for outsourced contract manufacturing for major apparel brands such as Nike, Under Armour, Gap, Apple, and others.

Is Mexico the World's Next Manufacturing Hub?

Elementum

According to Deloitte’s 2016 Global Manufacturing Competitiveness Index, Mexico ranks number eight out of 40 countries including Canada, Sweden, and Vietnam. Mexico may become the global manufacturing nerve center if the country plays its cards right.

MobiVi: Establishing Credit Lending In Vietnam Using Telecom Technologies

The UCLA Anderson Global Supply Chain Blog

MobiVi: Establishing Credit Lending In Vietnam Using Telecom Technologies By Hau Lee (Stanford), Jawad Masood (UCLA), and Christopher Tang (UCLA). Like many developing countries, access to credit for middle and lower classes through formal banking channels is limited in Vietnam. By the end of 2011, there were one million credit cards issued in Vietnam only to the high-income class because of the absence of a personal credit bureau.

Modern Slavery in Today’s Supply Chains

The 21st Century Supply Chain

The British Standards Institution (BSI) has also raised the alarm regarding slavery in the supply chain, releasing a new Risk Index Report identifying China, India, Vietnam, Bangladesh and Myanmar as the five highest risk countries for human rights violations.

Logistics is like a box of chocolates…

LeanCor

Even in the midst of a Vietnam-centered firefight Forrest Gump continued plunging back into the warzone to rescue his platoon-mates. By: Clint McCrystal – Training and Development Manager. link]. The year was 1994.

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Extreme Global Weather Set to Continue – What’s the Supply Chain Impact (Part 1)?

Kewill

Hanjin Bankruptcy Demonstrates Fragility of Ocean Freight Market Prior to “Black November”

NC State SCRC

The recent bankruptcy announcement of Hanjin, a major shipping line, on the Friday before the last Labor Day long weekend, was a shock to everyone working in the global logistics shipping industry. However, the announcement should not have come as a surprise, as the ocean cargo market has been suffering for some time by a condition of overcapacity, low rates, and a flat global market.

What do I need to do to get a drink around here?

Quintiq

A product travelling hundreds of kilometers across Vietnam or India in an unrefrigerated truck would result in high rates of spoilage. How Asia challenges beverage supply chains. If you aren’t familiar with Asia, the unique complexities it piles onto your beverage supply chain are hard to see.

Japan and Ecuador Earthquakes: Supply Chain Lessons from Past Disasters

Talking Logistics

struck Vietnam. The recent earthquakes in Japan and Ecuador are a sad reminder of how deadly natural disasters can be. As of this morning, 41 people are confirmed dead in Kumamoto prefecture, the epicenter of Japan’s earthquakes, and 272 people have died in Ecuador , with thousands more injured and displaced from their homes.

Keeping it Fresh: Supply Chain of Livestock and Fresh Food

Elementum

Varieties of produce and livestock can be sourced from anywhere in the world; mangoes harvested in the Philippines could be sold in the US, or rice grown in China may be packaged in Vietnam and sold in different countries in the UK.

Why Global Trade Agreements must be part of your supply chain planning: Guest Post by Tim Barnes

NC State SCRC

There is an overlap of countries that are party to both the TPP and RCEP, however for those nations, such as Japan, Vietnam, Malaysia, Australia, New Zealand, Singapore and Brunei, most have gone on the record saying that they see the US led TPP as the most critical and inclusive, and will put the RCEP on hold pending the decision on TPP. Today’s guest blog is posted by Timothy Barnes, who I met through the SCRC.

Analytics Should Focus on A Culture of Factory Safety for Workers in Low Cost Country Manufacturing

NC State SCRC

This will never work – particularly as we move into an era of global outsourcing and contract manufacturing in low cost countries such as Vietnam, India, Bangladesh, Malaysia, Indonesia, Cambodia, Sri Lanka, and others in Asia. A strike means something different in China then it means in Vietnam, and the reasons behind the strike will also be different. For analytics to become truly effective in global manufacturing settings, veracity and consistency are critical requirements.

Amazon vs. Alibaba: A Battle for Southeast Asia

Elementum

Lazada, a privately owned Singaporean e-commerce company, is the leading marketplace in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

Where Does Cuba Rank in Logistics?

Talking Logistics

It also lags the average LPI for the region, as well as Vietnam, a country that mirrors Cuba in many ways, but is ranked 48th overall with an LPI Score of 3.15 — ahead of Mexico, India, and Brazil.

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Sales and Operations Alignment: Often The Missing Link

Supply Chain Shaman

He had recently returned from his stint as the commercial leader for Syngenta in Vietnam, and was excited to tell me about his beach-side investment in Australia. I pushed aside Shane’s motorbike helmet and jacket to take a seat in his crowded office.

This Week in Logistics News (April 20-24, 2015)

Talking Logistics

Robinson Expands Asian Operations to Vietnam. Lots of supply chain and logistics news this week, so let’s go straight to the items that caught my attention: Amazon now ships to your Audi’s trunk ( USA Today ). Amazon Reveals Just How Huge the Cloud Is for Its Business ( Wired ).

Trade updates to watch in 2016

Icecorp

The countries involved (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam) make up about 33 percent of global trade. As a trading nation, Canada is party to numerous trade deals with other countries and regions around the world. These deals, along with various agreements about cross-border commerce with the US create a maze of regulations and an apparently ever-changing environment for companies that rely on imports or exports.

Has China lost its relevance as a production location?

Supply Chain Movement

This is still very favourable in comparison with wages within the EU, and wages have increased more significantly in other nearby countries, such as Vietnam and Bangladesh to name but a few. China’s position as a production location is currently a hot topic amongst global thought leaders in supply chain. The general price level of products made in China is rising rapidly, and it has been claimed that some of the products actually originate in North Korea.

Logistics Bureau is 20 years old this month!

Logistics Bureau

Provide 20 weeks of education for kids in crisis in Vietnam. Doesn’t time fly when you’re having fun. We’ll be doing a few things in the coming months to celebrate our Birthday. But this one is the most important. (read down to find your ‘gift’).

Is it Time for to Move Away from “World Class Supply Chains”?

NC State SCRC

The Vietnam War, for example, resulted in upward price and material availability pressures. An excerpt from our book “The Procurement Value Proposition” got a nice section of CSCMP’s Supply Chain Quarterly edition this week.

GrandVision: “We are changing completely as we become demand driven”

Supply Chain Movement

We are transitioning our Chinese supplier base to other regions such as Bangladesh and Vietnam for labour cost and quality reasons. Grandvision has grand plans.

Professor Yossi Sheffi on Resilience, Visibility, and Biggest Risks this Holiday Season

Elementum

Now, though, we might go to China for some things, but for assembly we might go to Vietnam, Malaysia, or more recently, an African country. Welcome to the second installment of Supply Chain Spotlight, Elementum’s interview series.

Transforming your supply chain: What experts said at Quintiq World Tour Singapore 2015

Quintiq

In countries like Indonesia, Vietnam and the Philippines, where labor costs are still relatively low, using manpower makes more sense than automation technology for now. What happens when you ask four experts for their thoughts on supply chain transformation?

Supply Chain Video News on What Countries will Benefit Most from TPP

Supply Chain Digest

New Study from the World Bank Puts Vietnam at the Top of the Lis, and the USA Last

6 Answers for Your Top TPP Agreement Questions

Transportfolio

Essentially it is a proposed trade agreement between 12 countries—the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

Collaboration: The New Battle Cry of Supply Chain

Supply Chain Network

Secondary markets like Vietnam and Turkey are also getting more attention. Bangladesh, Cambodia, and Vietnam experienced similar wage-related strikes and walkouts.

If You Were in My Shoes What Would You Do?

Tailwind

This one is about the Vietnam War. “If you were in my shoes what would you do?” ” I just love asking that question.

SCRC Meeting Insights Part II: Management Principles for Executing Visibility Strategies

NC State SCRC

And when you now expand your supply chain to places like China, Vietnam, and Latin America, where emerging country customers are located, the variability in data standards and integrity will only increase, as many individuals are still using fax and phone calls in these regions. As organizations move towards visible, high velocity, transparent supply chains, a number of questions arise that are fundamental to the business, but which executive often struggle to answer with any clarity.

Q: Food vs Fuel? A: Wrong question…We need more efficient markets!

Supply Chain View from the Field

Haiti grew all of its own rice, until the World Bank told them to take the tariff off – and once they removed the tariff – they could buy it cheaper from the US and Vietnam than they could grow it in the country. I have been working with Jay Golden at Duke University on the biobased forecasting project for the USDA, seeking to understand the current scope of the biobased product market ( focused on non-fuel, non-food products).

Manufacturing Spotlight: Philippines

Elementum

The Philippines is now ranked next to China, overtaking Thailand and Vietnam. 20 Japanese electronics firms were considering to transfer their hubs from China to the Philippines in 2016, due to China’s declining economic growth and rising wages.

Redesign to Improve Value: A Case Study of a Supply Chain Leader

Supply Chain Shaman

For example, we produce in Vietnam and China. Vietnam is a low-cost market to produce products. This week, I will speak at Llamasoft’s conference on improving supply chain network design. I am also busy this Saturday writing reports for our Tuesday newsletter.

Global Logistics—January 2016

Inbound Logistics

sign liberalized air transport deal; global manufacturers shift production to Bangladesh, Thailand, Korea and Vietnam

A Big Week for U.S. Trade Legislation: Updates on TPA & GSP

Transportfolio

Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Some of us in the trade community have felt the U.S. trade agenda had been neglected for the last five to eight years by a Congress that is focused more on domestic issues.

Everything You Need to Know About the Trans Pacific Partnership, In One Place

Elementum

Canada, Mexico, Peru, Chile, New Zealand, Australia, Singapore, Brunei, Vietnam, Malaysia, and Japan) finally came to agreements on everything from dairy trade to pharmaceutical IP rights.

Speculation and Shipping in the South China Sea

Elementum

The historic line still claimed by Beijing—despite contrary findings—referred to rather accurately when drawn out on a map as “the cow’s tongue,” covers the Paracel Islands, the Scarborough Shoal, the Spratlys, and sidles right up to several Southeast Asian countries’ borders: namely, Brunei, Vietnam, Malaysia, and the Philippines.