Manufacturing in the U.S. is growing stronger, but maintaining and strengthening America's competitiveness in the global market will require a tremendous measure of planning, effort and focused financial investment.
Recently dubbed the world's second-largest maker of personal computers, Lenovo has adopted a new B2B sourcing solution from IBM for streamlining communications with logistics-management providers and contract manufacturers.
As part of a program to cut costs and guarantee the lowest prices on the market, the big retailer seeks to boost its reliance on direct sourcing. But the change will require a major overhaul of its IT supply-chain infrastructure for dealing with key suppliers.
Supply chains are just as susceptible to faddish behavior as anything else. We're social animals, so we tend to follow the crowd - especially if we believe that the crowd has a competitive edge. That's why so many companies flocked to China over the last couple of decades, in search of ever-cheaper sources of production. Or why outsourcing became such a hot trend over that same period of time.
We like the term "supply chain" because it suggests a tightly interlinked series of steps that results in the uninterrupted flow of product from the raw-materials stage all the way to the consumer. But the word "chain" also evokes a burden, and that's how many companies have come to view their operations in recent years. Hence the mania for outsourcing everything from design and manufacturing to logistics.
Tim Jordan, associate director for supply chain management with MAP Pharmaceuticals, talks about the key elements involved in setting up a strategic sourcing program for global companies.
Companies dream of one cohesive supply chain that can harmonize information and business processes worldwide. But what if your customers' needs in regional markets are so different as to make that dream impossible?
As supply management organizations strive to extend their influence throughout the company and impact the bottom line with ever fewer resources, some are turning to managed service providers (MSPs) to make the best use of their organizations' time and talents. MSPs, sometimes called consolidators, can be used for certain spend categories, such as energy or telecommunications, that traditionally have been difficult for mid-sized procurement organizations to manage effectively.