Analyst Insight: For retail, what's on the supply chain horizon isn't one-dimensional, purely best practice, absolutely the optimum, but rather a continuum of distinct models working within several different environments. From a supply chain vantage point, the best retailers are those who orchestrate supplier resources with their own, resulting in agility and responsiveness to changing situations and differing customer needs. - Robert Sabath, Principal Essentialist SCM, Trissential
Analyst Insight: Tracking supply chain metrics can help organizations identify opportunities for quality and performance improvement. However, identification is half the battle; organizations must adopt practices that can lead to improvement. One of these practices is the development of close relationships with key suppliers and service providers. Through these relationships, organizations can realize improvements in both performance and quality. - Becky Partida, Research Specialist, APQC
This year Western firms' giant bet on the emerging world will come under more scrutiny. Most multinationals are profitable in emerging markets. American firms, for example, made a 12 percent return on equity in 2012, roughly in line with their global average. But having grown fast, profits are now falling in dollar terms.
Analyst Insight: Economic growth has recently slowed in the BRICS countries, causing concern among both global and domestic investors. In many industries, the time for reaping quick rewards from investment has passed. If companies want to continue succeeding in the BRICS markets, they need to increase their focus on creating competitive operational models, with a major emphasis on improving supply chain management. - Viktoria Sadlovska, Managing Director, Prameya Research, & Lead Author of the Pragmatic Value Chains Blog
Analyst Insight: Online sales surged last year, and many companies saw their e-commerce sales grow by double digits. This growth is expected to continue for the foreseeable future, so the good news is that rising rates and revenue for e-commerce are significantly exceeding expectations. But there is bad news too - e-commerce is stressing distribution operations and many companies are having difficulty keeping up. Adopting the right operational practices for order fulfillment is essential for business success. - Kelly Reed, Partner, Tompkins International
Analyst Insight: Facility location planning is a six-dimensional balancing act encompassing long-term facility commitments with need for agility, predictable demand patterns with seasonal and spiky demand surprises, material handling investments with facility flexibility, return on investment with immediate operations effectiveness, cutting-edge technology with common sense, and operational efficiency and cost reduction with technology investment. Consequently, the best FLP results are those that design in the most needed capabilities, leaving space to accommodate the flexibility that drives location success. - Robert Sabath, Principal Essentialist SCM, TRISSENTIAL
Companies that successfully rode out the recession are now looking for better times ahead, but they should be cautious, says a report from Jones Lang LaSalle, which identified five operational issues that companies should remain focused on as the economy continues to strengthen.
Analyst Insight: Both the public and private sectors in China are taking bold steps to respond to challenges of the new consumption-driven economy. Government measures, though stuck at a policy level in many cases, are addressing the right issues. At the same time, domestic companies are rising up to meet new demands. In 2014, China will see big changes in its core logistics and manufacturing industries. Some of the top areas seeing change include domestic transportation, distribution, import and export, as well as sourcing. - Jim Serstad, Managing Director Asia, Tompkins International
There is a serious and growing talent shortage in the supply chain profession. Art van Bodegraven of Discovery Executive Services discusses what's behind the talent gap and and how to address it.