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This key supplier had been identified and sure enough, you have a second source primed and ready to go. A few hours later, your procurement head walks in the office. “We We have a problem.” The alternate source uses the same supplier in Taiwan. Your heart sinks as you pick up the phone to call your boss…. Think again.
Antimony (Sb): A metalloid used primarily in flame retardants and lead-acid batteries; predominantly sourced through stibnite (Sb2S3) ore. Even when sourcing from countries like Belgium, Germany, and Japan, there is often upstream exposure to China. Alternative sourcing: Identify additional suppliers to mitigate dependencies.
As a result, when tragedy strikes like an earthquake affecting Japan or flooding rains overwhelming Bangkok, automakers and electronics manufacturers are unable to identify which of the suppliers upstream in their value chain may have been impacted.
18th, 2023, Source: Marinetraffic Since mid-November multiple ships have been attacked in the Red Sea by Houthi forces in Yemen. Live map of Suez Canal and Red Sea, Dec. Diversions announced by these five carriers so far mean that 17% of global volumes will be taking the longer, more expensive and more carbon intensive routes.
Exiger has previously analyzed Chinas regulatory moves to restrict these minerals trade flows, highlighting the need to identify alternative sources of supply. government procurement of critical components. national security and the sustainment and procurement related to critical U.S. Following the U.S. Impact on U.S.
Customer Additions Announced new customers in the latest quarter included Japan based Ono Pharmaceutical and Swiss based Octapharma in the Life Sciences sector. Within the Industrial sector, customer wins included Germany based Krones AG and Japan based Nippon Seiki.
Diversify and Strengthen Your Supplier Network for Reliable Sourcing Overreliance on a single supplier or geographic region increases vulnerability during economic disruptions. Nearshoring and establishing regional supply centers can reduce dependency on distant sources and enhance responsiveness.
28% of global retailers have tried to find alternative sourcing options due to supply chain issues (RetailNext, 2020). Source: Consultancy.UK. Image source: Fortune. Image source: Financial Times. Over 90% of the United States’ semiconductor-grade neon is sourced from Ukraine. Image source: Bloomberg.
Across twenty additional countries, Amazon’s other centers are predominantly focused on fulfillment and delivery stations while some countries, like Italy, the UK, Germany, France, Spain, Singapore, and Japan also have Prime delivery facilities. Source: Amazon.com. Let’s Talk About Boats, Ships, and Trucks.
Diversify your supplier base Single sourcing presents a huge risk for companies in all industries, especially as geopolitical disruptions are on the rise. Focus on materials critical to your highest revenue products Procurement and supply chain managers need to adopt a new mindset for building more resilient supply chains.
LevaData to Transform Strategic Sourcing for Global Procurement and Supply Chain Leaders. As I wrote following the earthquake and tsunami that devastated Japan in March 2011, the reality is that there is relatively little companies can do right now to minimize the impact of these disruptions. Convey Closes $8.25
Currently, Japan’s matcha the finely ground green tea loved worldwide faces a supply crunch as global demand outpaces production. Legacy IT systems, which were not designed for real-time data sharing, force production, procurement and logistics to run on separate, disconnected systems.
JAGGAER’s Amenallah Reghimi and Mic h ael Roesch recently partnered with Philip Ideson , founder and managing directo r at Art of Procurement , to bring procurement professionals a presentation on response tactics for the current global crisis. I think this will also help procurement teams learn to be agile.
As the tsunami that devastated parts of Japan in 2011 and dislocated supply chains worldwide underlined, companies need to be better prepared to respond to a widening array of potential disruptions. But persuading managers, and notably procurement professionals, to build supply chain risk into their decisions can be an uphill battle.
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.
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.
These changes can significantly impact supply chains by affecting sourcing strategies, trade routes, and market access. The scarcity of skilled professionals in areas such as logistics, procurement, and data analytics can hinder the ability to effectively manage and optimize supply chains.
Based in the USA and later North Asia, I specialized in “Supply Chain Solutions” for North American / European Corporations with Asia Pacific manufacturing/sourcing operations”. “My Prior to that, I was with TNT for 6 years. My passion for Logistics and Supply Chain is founded from. my very structured upbringing.
It currently has no limits on truck emissions, unlike other countries such as the United States, China, Japan and Canada, which already have truck fuel efficiency standards. Outside of the Paris Agreement, the European Union (EU) has a goal of reducing greenhouse gas emissions from transport by around 60 percent below 1990 levels by 2050.
By the end of this year it expects to have more than 400 stores, mostly in Europe but also in Japan. I’ve been setting up a simple S&OP process that involves the expansion, procurement, finance and supply chain departments. billion (Euro 235 million) last year. And how are you going to do that?
They have been in an ongoing firefighting mode with new shortages occurring every few days; Covid, the Russia-Ukraine crisis, and the recent earthquake in Japan are just a few top-of-mind examples. Diversification of Sources. Now, they have OKRs in place to drive dual sourcing. Timely Visibility of Disruptions & Impacts.
Global auto producer Toyota encountered a “ systems related ” shutdown of auto production operations across Japan according to multiple news reports. A company statement indicates that the automaker was scheduled to resume production operations by the start of the second work shift today among its 14 Japan based production plants.
I am a proponent of dual sourcing. The vulnerabilities with sole sourcing are very real. The situation has exposed to all the extent of the limited sourcing which has become very visible as a single point of failure in all Supply Chains reliant on the supply of computer chips. Subscribe to Supply Chain Game Changer.
front that retailers and certain businesses may have procured too much inventory , and now that these inventories have arrived, the challenge will be not to exposed to a decline in consumer buying activity in the months to come. This month, the Economist Intelligence Unit revised its forecast of the overall U.S. inflation rate to be 9.2
In aerospace, offshore supply chains are already heavily weighted toward allies like Japan and NATO member countries. And the DOD promises to use its procurement and contracting power to “ diversify domestic and allied supply chains to support the on-shoring and ally-shoring of critical supplies.”. As the U.S.
Revisit your sourcing arrangements with suppliers, especially with a view to geographic location. Put your logistics, supply chain and procurement teams on high alert for computer viruses and increased phishing attempts. Develop business continuity plans with your suppliers.
political leaders and geopolitical analysts advocate procuring more goods from other democratic countries. There is an enormous opportunity to make America’s supply chains less overseas dependent by sourcing more parts, materials, and products from America’s neighbors. corporations.
Citing sources familiar with plans, The Wall Street Journal report ( Paid subscription or metered view ) indicates that the semiconductor producer plans to announce in the coming months the building of a second cutting-edge plant north of Phoenix, Arizona , a presence that the chip maker originally committed to in 2020. has to do so as well.
The Institute for Supply Management reports that companies with diversified sourcing were better positioned to deal with the Asian market supply chain disruptions. Companies with resilient supply chains overall grow more rapidly because they can source products faster when consumer demands changed. Diversify Your Supply Chain Now.
Japan manufacturing PMI fell to 44.8 Introduce digital procurement technology. One best practice is to identify which suppliers offer components that go into a high percentage of revenues and are a single source that no one else can supply. Eurozone manufacturing PMI crashed to 44.5 in March 2020, down from 49.2 in February.
To research, develop, produce, and distribute its pharmaceuticals, vaccines, and consumer healthcare products, the firm has “a massive global footprint, sourcing ingredients and commodities from all over the world,” said Gupta. Early on in this journey, a strong partnership with his counterpart in procurement was a critical asset.
Manufacturing network diversification: The US-China trade war has forced many businesses to consider diversifying their sourcing and manufacturing bases. Diversification can be achieved by working either with additional suppliers, or with existing sole suppliers that can procure from multiple locations.
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.
Do you currently work primarily with Life Sciences clients at Resilinc? I have nearly 30 years of experience as a global procurement and supply chain leader in High-Tech and Life Sciences. It has to become embedded in the processes of sourcing, strategic category management, purchasing, compliance and supplier development.
Procurementsourcing and tail spend solutions provider Fairmarkit announced the completion of a $35.6 This provider describes itself as an AI- enabled procurement Cloud platform built for the sourcing of lower-dollar, non-strategic purchases, commonly referred to as “ tail spend.” Fairmarkit Announces $35.6
Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) are designed to boost economic growth through trade by opening markets by way of progressive removal of customs duties, eliminating or reducing trade barriers and tariffs, lifting restrictions on services and even through public procurement. Holy See (Vatican City State).
The company’s integration partners include Element Logic , one of Europe ’s intralogistics companies; and Okamura , a Japan based provider of high-quality products and services for offices, education, commercial facilities and distribution centers. JAGGAER Finalizes Added Strategic Partnership.
Included in the August report summary were production downturns in the Eurozone , Japan and U.S. manufacturing and procurement activity levels, namely the ISM Report on Business Manufacturing PMI , and the S&P Global U.S. Japan ’s manufacturing sector reportedly moved closer to stabilization in August.
Rates of manufacturing contraction eased across Europe and in Japan. What remains evident from surveying the May reported indices is that motivations for lowest cost sourcing remain an influence in global production activity levels in addition to added supply network resiliency. Although the May reading of 57.5
In our prior commentaries related to supply network strategic sourcing, we, along with many others, have noted that the ongoing global-wide shortage of semiconductor devices needed for automotive, high-tech electronics and other industries have been elevated to strategic geo-political policy dimensions. Supply Chain Matters Perspectives.
Rick Freeman joined Resilinc in July after more than a dozen years in procurement and supply chain for semiconductor manufacturer Micron Technology. Then start looking at the risks in your supply chain for those items, including geopolitical, natural disasters, financial health and where a single source supplies items.
Bloomberg pointed to exports to markets including Australia , Brazil , Japan , Taiwan and South Korea declining by double-digit percentages as well. A further factor are ongoing efforts by manufacturers and retailers in initiating less reliance in termed China Plus materials and production sourcing alternatives.
On a regional basis, Europe reportedly remained a principal drag on global factory output, along with contracting output in Japan and the United Kingdom. Sustained Contraction in Japan The au Jibun Bank Japan Manufacturing PMI ® report for November was headlined with a sustained contraction in Japan’s manufacturing sector.
Added Thoughts Both South Korea and Japan are being positioned by evolving U.S, Japan itself is increasing its own investments in lower-tiered semiconductor materials supply capabilities along with fab capabilities. trade policy to be noted as friendly nation trade partners.
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