There is only so much that a single organization is going to be able to achieve to improve the impact it has on the environment or society, without collaborating with the wider aspects of its supply chain.
A recent Deloitte survey of 600 executives at manufacturing and retail companies found that 63 percent were highly concerned about risks within the extended supply chain comprising vendors and customers, ranking it among their top-two concerns. The executives surveyed also cited "lack of acceptable cross-functional collaboration" as the number one obstacle to managing risk effectively. While these survey results indicating a serious lack of collaboration and coordination among trading partners are certainly worrisome, should they really come as a surprise?
Dell OEM Solutions announced that it has worked with Microsoft Corp. to become a global distributor, outsource manufacturer and integrator for Windows Embedded products.
IBM announced a new predictive analytics solution to help enterprises identify and root out problems that could lead to asset failure. These new business consulting services and software are aimed at helping decision makers predict and prevent damaging supply-chain disruptions.
Once we were discussing how supply chains are designed when someone made an insightful comment: "The vast majority of supply chains are not designed. They just happen. Their current form is the cumulative result of hundreds of mostly uncoordinated individual decisions made over many years or decades." The same could be said about enterprise application integration for many companies, in spite of the earnest efforts of enterprise IT planners and architects.
Breaking down functional silos to create transparent and responsive end-to-end supply chains has long been an intractable supply chain challenge, but many companies are finding success using a control tower concept that gets everyone working off the same plan and focused on the same outcome.
Conceptually, supply chain "risk" is used to denote perils, loss, dangerous occurrences, hazards, and even vulnerabilities. Risks include everything from management functions to fraud, to fundamental honesty and loyalty issues encompassing every aspect of an organization's status and operations. In addition to the firm's built-in management risks, the international supply chain provides additional third-party risk elements such as foreign shipper practices, carrier practices, weather, foreign government involvement, unforeseen disruptions in the process, timing, language, cargo quality and quantity, even payment issues.
A manufacturing renaissance is taking place in the United States. According to a recent MIT study, 14 percent of manufacturers have made definite plans to move some of their currently offshore production back stateside. An additional 30 percent are considering it. The common term being used for this is reshoring. The reshoring trend is growing and can garner goodwill with domestic customers, consumers and even legislators. But any careful decision to reshore or expand domestic manufacturing capacity will be predicated on goodwill benefits and growing profitability.
German clothing company C&A is expanding its radio frequency identification system from what was initially a trial involving five of its stores in Germany, to cover 25 locations. C&A, which manufactures its own apparel and footwear for men, women and children, is testing whether the technology can improve its supply chain visibility and in-store inventory, to ensure that at all times certain goods are on the shelves for purchase at each of its stores.
More than half of chief procurement officers have agreed that their company pursues short-term savings from suppliers that undermine long-term value, according to a survey by the Consero Group.