Profitability and sustainability don't have to be mutually exclusive. By considering environmental issues when setting financial objectives for a supply chain network analysis, companies can successfully balance the trade-offs between them.
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.
Aside from a potential rise in protectionism, there are other, fundamental short-term and long-term factors that have caused Global Insight to take a gloomier view of prospects for international trade growth in the near future.
Driven by a desire for more supply chain collaboration, businesses expect to expand their reliance on outside partners over the next three years, say executives who participated in a survey conducted by BusinessWeek Research Services and sponsored by SAP.
Supply chain risk levels appear to be rising fast, yet many companies are ineffective in preventing or responding to that situation, according to the results of a study conducted by insurance broker Marsh Inc. and Risk & Insurance Magazine.
Ten years from now container ships along the busy Asia-to-Europe trade lane, instead of plying the waters of Southeast Asia and transiting the Suez Canal, might head in the opposite direction, toward the Canadian High Arctic.
An annual study of global supply chain trends conducted by PRTM Management Consultants concluded that supply chain executives are still struggling to make global initiatives pay off for their companies.