Candy makers Just Born Inc. and The Hershey Company took different approaches to network optimization: One used a customized software package, while the other chose a commercially available solution. Here's why they made those decisions.
The supply chain profession needs a more comprehensive model for measuring the effectiveness of both internal and external supply chain management. Current models don't quite do the job, the authors contend.
Forget low-cost country sourcing as a strategy. Today, a comprehensive approach to procurement requires that companies also consider total supply chain costs and lead times. This means that the most profitable source may be close to home.
Companies need to stop beating down suppliers on costs and collaborate with them to control costs for both parties, says Jimmy Anklesaria in his book, Supply Chain Cost Management: The AIM & DRIVE Process for Achieving Extraordinary Results. In this excerpt, he explains how companies can get this process going. The most important steps include understanding how suppliers price their products and identifying suppliers' critical supply chain costs.