Competition, complexity and global outsourcing are making supply chains more vulnerable to disruptions and interruptions, with issues ranging from inefficient production scheduling to broken equipment to financial crises and natural disasters. Supply chain capabilities, such as adaptability, agility and cooperation among supply chain partners, will help supply chains be more resilient to disruptions. But what […]
Read More… from Supply Chain Resilience Depends on the Internal Capabilities of Partners
Despite the well-known and well-documented financial benefits of outsourcing and offshoring business activities, a growing number of U.S. companies are changing direction: they are moving their business activities, including manufacturing and service operations, from foreign markets back to the U.S. — a process known as ‘reshoring’. Reshoring entails both benefits and costs. On the benefit […]
Read More… from The Cost Advantage of Reshoring
In 2015, Coca-Cola Enterprises Great Britain and Cranfield University collaborated to launch a project on ‘Sustainable Manufacturing for the Future.’ The first phase of the project was a roundtable discussion that led to six themes: People, Big Data, Technology, Collaboration, Value and Resilience. This phase is covered in Idea 652. Once the themes were identified, […]
Read More… from Sustainable Manufacturing Part 2: Five Pathways
Corporate social responsibility (CSR) represented a first step in recognizing that business had a societal role to play that extended beyond simply making a profit. Today, the thinking has evolved from the ‘doing good’ mindset of CSR to a ‘doing what is necessary’ mindset embodied in the concept of ‘sustainability.’ Sustainability — the ambition to […]
Read More… from Sustainable Manufacturing Part 1: People, Technology and Collaboration
“Are you a good witch or a bad witch?” Glynda asks Dorothy in the classic movie, The Wizard of Oz. For manufacturers seeking to efficiently manage their inventories, the same question lingers over the issue of customer concentration: is customer concentration — serving a small group of major customers rather than a large number of […]
Read More… from Serving a Few Major Customers Vs Many Diverse Customers
Many companies recognize the reputational risk of the environmental reputation of their suppliers. As a result, companies launch green supply chain management (GSCM) initiatives, working with suppliers to ensure that their activities and processes are environmentally friendly. There are two ways for companies to engage with suppliers on environmental issues. One is to monitor their […]
Read More… from Collaborate with Suppliers to Ensure Green Practices in the Supply Chain
In 1997, a fire at the only Toyota supplier providing the carmaker with P-valves inspired a change of policy: from then on Toyota would dual-source every part. By 2000, however, Toyota, citing the economies of scale possible through single sourcing, once again consolidated its supply chain. Companies that experience a significant disruption in their supply […]
Read More… from Supply Chain Risk: Diversification Vs Under-diversification
Founder and director of the China Supplier 1000 Project, Neale O’Connor, a former visiting associate professor at the National University of Singapore Business School, conducted face-to-face interviews with 1,000 suppliers in China and Hong Kong. Among the core lessons for buyers, Neale writes, is that China retains its strength vis-à-vis other countries, but is facing some […]
Read More… from Buyers Beware: Costs for China Rising
For the past 20 years, like a herd of stampeding buffaloes, companies have been moving en masse their manufacturing to low-labour-cost countries. Despite the occasional bad publicity as working conditions in some of these countries become known, the tidal wave of offshoring seems to make financial sense: companies save money on wages, which are reflected […]
Read More… from Outsourcing Vs Reshoring: The Case for Local Manufacture
Supply chain management has become increasingly sophisticated over recent decades with improved financial performance as a result. Just-in-time (JIT) manufacturing; sole-source suppliers; outsourcing to low-cost locations; common parts; and centralized inventories – these among other measures have helped leaders run supply chains more efficiently and guard against recurring risks such as changes in demand, supply […]
Read More… from Is Your Supply Chain Prepared for the Unexpected?
