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In my last post, I likened sourcing complex categories to solving a Rubik’s Cube, making the case that not all sourcing events are alike and that only by first understanding the unique starting point, i.e., the problem to be solved, can companies learn to collaborate with suppliers for the best possible solution.
Logistics represents a perfect case for exploring how a collaborative approach to complex sourcing can deliver better outcomes for all parties and ultimately improve supply chain performance. Continue Reading »
A 2009 report from Health and Human Services found that 59 percent of the North American food facilities surveyed did not meet the FDA’s requirements to maintain records about their sources, recipients and transporters. On the heels of the largest recall of eggs in FDA history this month and pending legislation in the Senate, food safety and traceability have never been more relevant.
While most food safety reforms focus on the protection and prevention of contamination, traceability systems are critical to quickly identifying product origins for removal from the supply chain. According to the CDC, an estimated 76 million Americans get sick from food borne illness each year, more than 300,000 are hospitalized and about 5,000 die. With such high numbers, growers and retailers alike need to be aware of how invaluable track and trace technologies are.
As the market leader in RFID and thermal printers, Zebra Technologies’ broad experience in supply chain management and building unique RFID and barcode solutions across a variety of industries has illustrated the importance of providing traceability – especially within the food industry. The below video with David Senerchia , Director of Business Development of Zebra Technologies, highlights the importance of food traceability throughout the supply chain:
With more label and scan points throughout a dairy, produce or food growers operation and shipping, products can be more accurately traced throughout the supply chain. This provides an extra layer of protection should a food-borne illness occur – allowing growers to quickly review their records to determine if the faulty product came from any of their farms and then alert their partners.
This can save businesses time, money and reputation. As produce growers/shippers look to obtain Produce Traceability Initiative compliance, they can look to Zebra as a reliable product partner to provide practical, mobile and desktop printing solutions to ensure multiple label and scan points to track the life of the product from farm to fork.
Much of the evolution of modern outsourcing can be tied to the study of economics. In fact, economic research stretching for more than 80 years is woven into the fabric of modern outsourcing.
Economic thinkers have focused on growth theory, transaction costs, game theory, property rights, deregulation and the nature of the firm. At least six Nobel Prizes have been awarded to economists that tell us fundamental truths about outsourcing.
Business is a Math Problem
Ronald Coase shed light on a concept known as transaction cost analysis.
He advocated that it was not enough to include only production and transportation costs as the main costs of doing business; businesses needed to also consider the cost of entering into and executing contracts as well. This boils down to a mathematical exercise, and his breakthrough thinking was even given a mathematical name, the Coase Theorem.
It seems obvious now but Coase’s inclusion of contracting and contracting costs into the mix of a firm’s organizational structure and accounting resulted in a Nobel Prize in Economics in 1991 and created the conditions for outsourcing to become a normal, major part of a firm’s strategy. Continue Reading »
This week, I will raise my glass to toast Barbie. Barbie, you might say? Yes, this year, my early childhood friend is 50. I am DEFINITELY telling my age when I share that she consumed the first 10 years of my life.
I am also telling my age when I share that Supply Chain Management (SCM) has consumed the last 20 years of my life. Did you know that SCM is less than half the age of Barbie? It is a relatively a new area of study, but one that is growing in importance. As it changes, it is important to retool, and embrace new concepts. As an analyst tracking the evolution of supply chain management, one of the fascinating aspects to me is the rate of change.
Which leads me to vocabulary. I know, a lot of us hate it; but consider that new words open the door to new concepts. Continue Reading »
Four Soft (4S), a global leader offering software solutions for Logistics and Transportation industry is pleased to announce that it has won a new deal from Alba Wheels Up® International, Inc., one of the premier Customshouse broker and industry leading Freight Forwarders, to implement its Order Management system 4S Visilog, Global Freight forwarding application 4S eTrans and Global Customs compliance solution 4S eCustoms across multiple locations in USA and Hong Kong.
As per the contract 4S Visilog will be rolled out initially with integration to 4S eTrans at multiple locations of Alba Wheels. This contract has been executed through Four Soft USA Inc a subsidiary of Four Soft Limited, India. Continue Reading »
From Sourcing Innovation: “A recent article in the Harvard Business Review outlined seven questions to ask to find out if you are ready for a rebound. What I found enticing about the article is that these seven questions have supply chain corollaries. If you can’t answer yes to these seven questions, chances are that your supply chain will not be ready for the decade ahead.” Continue Reading »
The Institute for Defense and Government Advancement (IDGA) announces its eighth annual Military Logistics Summit scheduled for September 13-16, 2010 in Vienna, VA.
IDGA’s Military Logistics Summit 2010 will present updated DoD mission priorities and cutting edge information to support major deployment, re-deployment, and distribution operations. The event will bring together thought-leaders and decision-makers in logistics, sustainment, and readiness operations to discuss the latest implementation strategies and program initiatives to ensure the flexibility and preparedness of our military’s future.
“Over the years, the Military Logistics Summit has become the leading event for senior-level defense logistics professionals,” said Thomas Engleman, the event’s producer. “This year, we’re introducing an ‘Ask the Expert’ feature, where a logistics expert will be on-hand specifically to answer questions. We try to do something new every year, while keeping the same quality and standards people have come to expect.” Continue Reading »
A paradigm shift is required for the acquisition and product support of COTS configured weapon systems.
Over the last several years there has been a marked increase in the use of Commercial-Off-The-Shelf (COTS) components in configuring new weapon systems. This initiative has been driven by Commanders in-theater requiring the rapid fielding of new weapon systems to fight a new type of enemy.
The traditional approach of sourcing components that are Developmental Items has been recognized by Program Manager (PM) Offices as being much too lengthy to meet the urgent needs for most new weapon systems; our Special Forces commands have been the most aggressive in using COTS based weapon systems. COTS items have been identified as the solution to field a weapon system quickly and relatively inexpensively. Continue Reading »
There’s a lot of buzz right now about growth opportunities in the Logistics Service Provider (LSP) sector. While clearly not at historic levels, consensus is that the sector will return to growth.
Taking that into consideration, the question in my mind is this: With renewed focus on growth, will the future bring higher customer satisfaction for shippers and greater financial returns for LSPs?
It seems to me that a lot of LSPs have grown more opportunistically than strategically – and it’s been a rocky road for many. With glimpses of growth opportunities now on the horizon, I hope the LSPs will step back, look at where they’ve been and where they want to go, and ask themselves these key questions:
1) Have we analyzed the market segmentation: by profitability, by customer or customer group, by service, and by geographic region?
2) Have we identified best opportunities for growth in terms of our capabilities, capacity, and talent?
3) Are we in tune with our customers’ needs, wants and future strategies?
The good news is that I am seeing some laser-focused companies that are systematically addressing their markets. They know exactly what they want to do and who they want to serve. They are investing in the people, processes and technologies required to meet and exceed customer expectations. They are willing to walk away from deals that don’t match their strategic focus, and they invest in the talent and tools to pursue the deals they want. Continue Reading »
Since January of 2007 I have been writing this blog for the most part on my own with the exception of some excellent feature guest articles from time to time. As you may have noticed, I’ve been otherwise occupied recently with the development of a number of new social media groups and blogging concepts and am pleased to now bring these back to make the Supply Chain Network even better!
This will be accomplished by making SCN a hub for a true network of Supply Chain Bloggers and these are all listed below for your information and I will soon add connections to all of their posts on the SCN site as well as their own companies and blogs in case you wish to visit with them directly.
We are of course always looking for more supply chain practioners and thought leaders who also would also like to become contributors to the Supply Chain Network!
Last week’s strike at the Omron auto parts plant in Guangzhou was the latest in a series of labor disputes to rock China’s industrial sector over the past two months. It’s an amazing change we’re seeing, as the western world’s favorite source of cheap manufacturing labor begins to transform itself into something quite different: a country with a rising middle class, demanding the perks of a developed economy.
Western sellers of cars, computers, apparel and other popular consumer items must be having conniption fits. Many exist on perilously thin margins – that’s why they flocked to China in the first place – yet are facing higher supply chain costs at a time when demand for their products is anything but assured. More than a few will be booking flights to Vietnam, Malaysia and Bangladesh, in search of the next army of compliant, low-cost workers.
They’ll need to look fast. What’s happening in China isn’t a temporary phenomenon. Already we’ve seen strikes at Chinese plants making critical automotive parts for Honda Motor Co., Nissan Motor Co. and Toyota Motor Corp.; electronic components for Japan’s Mitsumi Electric Co., Ltd.; air-conditioning systems for a division of Ingersoll Rand, and beer for Denmark’s Carlsberg Group, to name a few. And let’s not forget the recent turmoil at the Taiwanese-owned Foxconn Technology Group, which boosted wages following a rash of employee suicides at its massive complex in Shenzhen. By all appearances, the summer of the Chinese industrial worker is far from over.
A curious thing about these uprisings is the way in which the Chinese government is treating them. There’s been no replay of the Tiananmen Square protests of 1989; demonstrators aren’t being arrested or shot, and the military isn’t out in force. The strikes are even being reported in the state-controlled Chinese press. So what’s going on? Continue Reading »
“When the well is dry, we know the worth of water.”, Benjamin Franklin
It was a cold winter day in Minneapolis. The security guard at the gate warned me of frost bite walking from the parking lot to the corporate offices of a client. So, I scurried along with snow crunching under my boots.
I was also expecting a frosty introduction. Manufacturing, distribution and sourcing were at an impasse. I was walking into a conference room of waring factions. After years of functional excellence programs, they had run out of ways to find the money that the corporation needed for growth. They needed the next big idea. They needed to find dollars/euros and they were only surfacing pennies/ shillings through their traditional processes. Continue Reading »
I want to share a little secret that has brought a tremendous amount of value to my business. But before I tell you what it is, I want to see if you can find it. It’s hidden in my email signature. Below is a signature I often use. Can you spot what my secret might be? Let’s see if you can figure it out.
George’s Email Signature:
George Muha
Vice President Sales
CHTL Logistics
p (973) 747-5924
e gmuha@chtl.net
You’re right- it’s all the links at the bottom! But note that they are not advertisements. They are pointing to several popular articles I’ve written over the last several years that I feel could be useful to customers and potential customers. My signature also points readers to my Twitter account, where I Tweet several times a day on relevant freight topics that will help my customers and potential customers.
John Hancock proved that a simple signature has the ability to get a lot of attention with his signing of the Declaration of Independence. An email signature offers an opportunity to bring a lot of attention to the good things your company is doing in supply chain.
I am proud to say that I work very hard at bringing value to the business world. I try to do my little part to help our economy by educating manufacturers, distributors and wholesalers about ways they can improve their supply chain. Continue Reading »
We hear and read constantly about the critical need for lean, green, transparent, collaborative, efficient and cost-effective supply chains and logistics partners.
But let me ask you this: How have your partnerships fared lately? How have things progressed over the past three or four years? Are your outsourcing and logistics contracts living up to their initial promises (and premises)? Do you often wish your suppliers were “more proactive”? Is a change necessary but at the same time a really scary proposition?
If you don’t like the answers to those questions, perhaps you should look in the mirror and start asking yourself if there is a better way to work with your service providers. Continue Reading »
Most organizations have a diverse spend portfolio that includes many simple, several moderately simple and a few complex spends.
To address each spend appropriately, we need to understand the dynamics that make each event complex. For starters, let’s look to another ‘multi-faceted’ puzzle; the Rubik’s Cube.
Invented in 1974 by Erno Rubik, Rubik’s Cube has puzzled generations around the world with its utter devilishness. The multi-faceted nature of the Rubik’s Cube makes for a good analogy to spend management and sourcing. Continue Reading »
So you want or need to learn about Logistics and Supply Chain Management? Take it from me, there are worse fates in life as at least these skills can be applied in the real world in support of business activity execution, expense reductions and to improve customer service. And even those who are perhaps here due to a one time passing interest or operational issue will be happy to know that these skills can be equally applied to planning and executing excellent parties! Continue Reading »
Supply Chain Network is taking an active role in assisting companies in their quest to deliver a Carbon Neutral Supply Chain. Check out our Create a Carbon Neutral Supply Chain article to learn more about real actions your organization can take to move toward this lofty goal.
Beyond the positive impacts such an action can have for future generations and on the general health of mankind’s home, there are now emerging positive business reasons for pursuing this goal. Some initial projects in this area that have been carried out by SCN Partner organizations have identified a 28% reduction in Carbon Emissions and at the same time a 9% reduction in related supply chain expense. Continue Reading »
Over the next several months the globalization of carbon reporting will begin to emerge. This will be driven by the entry of the United States into a mode of preparation for carbon reporting which will likely be done based on a coordinated North American initiative.
So what does carbon reporting mean? Well there are many approaches currently being taken today by different companies, countries and entities, from basic spreadsheet approaches all the way through to very sophisticated and integrated supply chain carbon reporting models. Continue Reading »
