This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
The following will delve into some of the intricate farm-to-table challenges that supply chains face across sourcing, demand planning, procurement and inventory management, transportation, and warehousing. The blackberries you eat today could be from Mexico, and the ones you buy next week could be from California.
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. AI plays a significant role in harnessing the power of this.
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.
Avoid the pitfalls of single sourcing and learn strategies to build a more resilient supply chain. Yet, within the pursuit of efficiency lies a lurking peril: single sourcing. The pandemic was a wake-up call to the dangers of single sourcing. What is single sourcing and sole sourcing?
Mr. Frasquet is the executive director of corporate procurement, although his responsibilities include a much broader set of supply chain responsibilities than just sourcing. In Belcorp’s case they have four factories located in Colombia, Mexico, Peru, and Ecuador. How do we best handle surging transportation costs?
Supply Chain Matters highlights concerns raised by automotive industry interests regarding evolving component sourcing among China based suppliers within Mexico. The report notes that electric vehicles assembled in Mexico can qualify for U.S. The report notes that electric vehicles assembled in Mexico can qualify for U.S.
A Possible Stimulus on the Horizon May Increase the Challenge of Procurement Through Peak Season. Hurricane season threatens to disrupt activities across the eastern seaboard and along the Gulf of Mexico. Download the White Paper: Over the Road Freight Management Trends. Hurricane season causes an influx of demand for flatbed.
Supply chain and procurement leaders must now navigate an increasingly complex regulatory environment, balancing cost efficiency with risk mitigation. However, if that supplier sources materials from China or another tariff-affected country, the costs could still be passed down the supply chain. For instance, a U.S.-based
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?
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.
For example, it is common to incentivize procurement organizations to lower a product’s purchase price variance. Sourcing Insights – From a buyer’s perspective, understanding landed cost is essential when evaluating competitive offerings and selecting suppliers. 20 (duties) + $.40
The initial findings from the investigation indicate that a subset of illnesses may be linked to slivered onions used in the Quarter Pounder and sourced by a single supplier that serves three distribution centers. Once again, federal food safety officials are focusing on a single production facility as the suspected source of the listeria.
If the roads leading up to the factory are damaged, that is a 2-4 week disruption, but if the factory is flooded, then equipment procurement or repair time, setup and qualification time, production lead time and transit times, all become critical path to recovery”, says Vakil.
Kevin and I worked together years ago to help define the a baseline framework for strategic sourcing and category management that was deployed within the Lubricants group, and which later became deployed across the entire Shell Procurement organization. Rather, it requires true collaboration with trusted supplier partners.
Does the vast potential of this promising technology mean that companies of all sizes and stages should be rebuilding their responsible sourcing systems from the ground up to include it? A single product on a retail shelf may be sourced from thousands of inputs coming out of dozens of countries.
Does the vast potential of this promising technology mean that companies of all sizes and stages should be rebuilding their responsible sourcing systems from the ground up to include it? A single product on a retail shelf may be sourced from thousands of inputs coming out of dozens of countries. How Blockchain Works.
That would include alternatives to China under the umbrella of China Plus sourcing. based companies had indicated in survey data and in concerted actions in termed China Plus sourcing strategies that either alternative, nearshoring, or reshoring efforts were being undertaken. Mexico is near the U.S. billion in September.
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.
Prediction Three of our research advisory indicated that more direct control of strategic and tactical direct materials sourcing would continue to be a prominent element of business strategy in 2023 and beyond. In 2022, more U.S. percent to 11 percent due to disruption in either their engineering, supply, production or operations units.
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. McCrea reports, in response to the current situation, “some companies are procuring materials from more U.S. Build value network capabilities.
Lucky are the companies that can shift production to other countries like Mexico or Vietnam. By using AI and ML, companies can better model and predict demand and fine tune their inventory from procurement to transport to warehouse to routing supplies to locations ahead of demand. The third is exports to China.
For example, US-based companies may be quite fortunate if they have access to manufacturers right on their doorstep in Mexico, a country with far lower labour costs than the rest of North America. Through collaboration with your procurement partner, you can reduce inventory levels and then potentially downsize your warehouse capacity needs.
The financial supply chain presents an opportunity to deliver beyond process efficiency and cost savings by allowing companies to tap into new sources of revenue and profit streams. Dave Munson @saddlebackbags Dave Munson is the founder and CEO of Saddleback Leather and of their leather factory, Old Mexico Manufacturing.
He was also an important contributor to our understanding of the modern field of procurement and supply chain relationship management. This argument made sense in 1937 – because procurement was viewed primarily as a transactional activity. The only focus they had was to drive prices down – otherwise they would keep the job inhouse.
12 trillion: the annual procurement spend by the Global 2000 (our estimate based on several sources, see image below). $3 trillion: the overall capex (procurement) spend for global energy in the past three years according to the World Energy Investment 2020 report by the IEA (who predicts a reasonable 20% decline in 2020). $25
New order growth reportedly accelerated at the fastest in nearly three plus year, which is a likely indication that this region has become the new go-to for China Plus product sourcing strategies. This is not only from the notions of China Plus sourcing actions, but is responding to export demand from other Asian, Europe and U.S.
The announcement follows the recent unveiling of the company’s Master Plan Part 3 , which outlined a series of multi-year billion dollar investments including the construction of an added production facility to be located in Monterrey, Mexico , and destined to produce the termed next-generation EV vehicle.
Four fundamental practices: Based on (Ali Esfahbodi, 2016) research, Chinese and Iranian governments have focused their fight for SSCM based on four fundamental practices: sustainable procurement, sustainable production along with sustainable distribution , and reverse logistics.
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.
Identifying key strengths in procurement and management in high-impact countries will support a fast improvement that may boost economic growth in the region. For now, Mendonça, Villena, and Ruiz have focused on just five major markets in the Americas: the United States, Mexico, Brazil, Colombia, and Argentina.
Thailand , India , and Mexico this year. Scope 3 emissions represent upwards of 70 percent of GHG emissions among businesses, and the principal generation of Scope 3 emissions have been proven to include the effects of business’s supply chain related sourcing and operational activities. In March of this year, the U.S.
Among the activity of the 29 nations that make up this index, only seven had indexes of positive values in December, which included India , Mexico, the Philippines , among four others. Sources; S&P Global and ISM, 2022. For the developing regions sector, India remains a standout, followed by Thailand , Mexico and Indonesia.
As we see with the COVID-19 pandemic, recent tornados in Tennessee, past hurricanes in the Gulf of Mexico, or labor unrest in other parts of the world—threats brought by natural or man-made disasters—can impact your supply chain, whether you have a global network or rely on partners across town.
Canada and Mexico based supply networks. and in the case of CPKC , into Mexico. and Mexico will continue to operate. However, the existence of the USMCA trade agreement framework is the basis of the seamless movement of goods among U.S. Both of these rail networks have surface routes that extend into the U.S. ,
Source: S&P Global Intelligence, July 2023 Highlights of Regional Reporting- Good and Not So Good Continued Production Expansion Across India Increased product demand and manufacturing activity levels across India during June outpaced all other regions. product demand volumes.
However, the lessons garnered during the pandemic will likely drive inventory management toward less of a dependency on global-wide sourcing and more toward product postponement sourcing and customer fulfillment strategies. Truck and rail transportation movements across the Mexico and U.S.
From our lens, the August data further reflects ongoing shifts in production sourcing within specific industry sectors. We sense that the accelerating manufacturing growth across India is reflective of changing global sourcing strategies within specific industry sectors. in August compared to 57.7
This time the disaster was in Mexico. The spreadsheet format I developed to track the status of each part was critical because it became the document of record and the single source of the truth. Selected as one of the Top 75 Supply Chain Blogs, and one of the Top 25 Procurement Blogs, on the Internet. All Rights Reserved.
Jeff Townley, former Chief Procurement Officer at Nortel Networks, provided some fantastic insights in my MBA class this evening. ” The BAD – “Back in the 90s a lot was going to Mexico. Nortel had a plant in Calgary, that had to be moved to Mexico. This was Solectron, that was later bought by Flex.
Christoper Matthews points out that a number of critical areas were impacted… “The power outages brought the world’s largest petrochemical complex to a standstill, forcing more plants in the Gulf of Mexico region to shut down than during Hurricane Harvey in 2017. as supplies tighten.
Procurement and supply management leaders will be expected to provide both leadership for supply resiliency and added value, but also supply network cost reductions. Predictions surrounding the global wide transportation and logistics industry vary, depending on the source and the stakeholder interests.
With manufacturers now electing to source more production in regions such as India and Vietnam , or in nearshored areas of Mexico or Northern Europe , the notions of changing global supply networks have implications going forward, not only for FedEx, but other global based carriers.
In conjunction with disclosing the plan, Tesla announced an investment in a new production facility to be located in Monterrey, Mexico , and that this facility is destined to produce the termed next-generation EV vehicle. That equates to the ability to produce and sell 20 million vehicles globally.
But reality might seem to indicate that German manufacturers need to continue to pivot from the high dependence on China and perhaps take advantage of the new manufacturing investment underway in regions such as India, Vietnam, Mexico , the United States and other regional areas.
We organize all of the trending information in your field so you don't have to. Join 102,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content