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Free Articles From The Current Issue
Glimmers of hopeLogistics costs plunged dramatically last year as the economy contracted. Preliminary data for 2010 show that a recovery is under way, but shippers still face a host of challenges.
Don't breathe a sigh of relief just yet
Despite the recovery, companies are likely to pressure supply chain managers to cut costs even further.
A bright future... together
We must move beyond the typical approach of "state the problem and talk about the frustrations."
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Purchase capacity, not products
Instead of simply buying parts and products from suppliers, manufacturers should reserve those suppliers' capacity. By doing so they'll gain more flexibility, better cost control, and higher product quality.
From the Quarter 02 2009 issue
Although the classic model for manufacturing firms relied on vertical integration, modern industrial organizations are built on their supply chains. Take Ford Motor Company, for example. Ford used to bring raw rubber and iron ore in one end of its River Rouge, Michigan, USA, manufacturing plant and push completed vehicles out the other end. Today, however, Ford procures more than 60 percent of the value of an automobile from suppliers....
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