Most companies treat all suppliers the same, and they respond too late to supplier-related risk. By segmenting their supply base and basing governance agreements on a supplier's role and importance in the supply chain, they could better anticipate and prevent disruption.
Companies that outsource manufacturing can better control process, product quality, flexibility, and delivery if they have a higher degree of integration with their suppliers. In some cases, it may make sense to bring some manufacturing in-house. A technique called "Krajlic's matrix" facilitates that decision.
To offshore, nearshore, or "reshore"? A total cost of ownership (TCO) analysis can answer that question. For some companies, TCO analyses are suggesting that manufacturing close to the point of consumption is the best choice.
Supply managers who work in the public sector must comply with unique transparency rules. Despite those and other constraints, they can achieve substantial savings by integrating the public sector requirements with privatesector supply chain management concepts.
When DineEquity combined the supply and distribution networks for two of its restaurant chains, it used process mapping to identify where to make changes. A top executive tells how this technique helped the company create a single, streamlined supply chain.
Many customer-supplier relationships were weakened or damaged during the economic downturn. To rescue them, both sides need to acknowledge past mistakes, identify the causes of those problems, take corrective action, and monitor the results.