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.
At Whirlpool, being green is more than just talk. Not only has the appliance maker taken the lead in developing energy-efficient products, but it has also redesigned its supply chain with an eye toward conserving energy and cutting air pollution.