Analyst Insight: For the better part of 40 years truly leading-edge firms have made supply chain design/redesign using network optimization models an integral part of their overall corporate strategy. The focus has gradually evolved from a myopic consideration of the number and location of warehouses to a comprehensive examination of the entire supply chain, from sources of raw materials to the customer. The principal impediments to success are myopic scope and failure to institutionalize the process. - Jeffrey J. Karrenbauer, President, Insight Inc.
Brazil's government has yanked down interest rates to record lows and kept the value of the real, the country's currency, in check. The government has even doled out tax cuts in attempts to boost growth. But so far, there's not much evidence those strategies are working "” and key economic data released recently probably won't change things.
Counterfeit products are becoming ever more prominent across a number of industry sectors. This is especially the case where, for the criminals involved, the returns are great. High-volume industries, such as tobacco and manufacturing components, and high unit-price industries, such as perfume and cosmetics, are widely targeted by counterfeiters. According to statistics published by the U.S. Department of Homeland Security, handbags and wallets accounted for 40 percent of all seizures during the fiscal year for 2012.
Analyst Insight: While much has been written about demand driven, daily demand variability drives operations crazy. Most current inventory planning and optimization applications are disconnected from daily reality resulting in operations relying on custom spreadsheets and tribal knowledge to reconcile the gaps between plan and actual. In addition, the inventory planning applications are often disconnected from the optimization applications (if implemented at all), further exacerbating the operations conundrum. - Rich Sherman, Supply Chain Discipline Expert at Trissential
Analyst Insight: With the trend toward multichannel and omnichannel supply chains, pressure is mounting for inventories that were intended for one type of demand to be called on to serve another. This conflict can lead to underserving the demand for which the inventory was planned and raise issues between organizational entities that lean toward protectionism, undermining competitiveness. Solving this issue requires effective decision-making processes that occur in real time based on corporate objectives. - Ralph Cox, Senior Principal, Tompkins International
Analyst Insight: Supply chain challenges were plentiful during Superstorm Sandy. Both physical and electronic supply chain operations were disrupted. Private sector operators responded with creative solutions, and public sector entities were better prepared than in previous disasters, but recovery will be a slow and arduous process. Approaches to ensuring resiliency in the face of such events cannot be singular in nature. Actions taken during response and recovery have far reaching implications for supply chains.
- Jock Menzies, President, American Logistics aid Network
The NOVUS Trust has launched a new logistics and supply chain degree in order to address the shortage of graduate talent in the supply chain and logistics industry. Sponsored by companies in the industry, the 4-year Logistics and Supply Chain Bachelors of Science degree course will "arm graduates with the tools they need for a successful career in the industry," starting with a guaranteed job from one of the course sponsors.
China has a new status its government doesn't want - world's biggest trader. Trade data from both governments indicate China passed the United States last year in total imports and exports by a margin of $3.86tr to $3.8tr. That is about $44bn, or just over one percent of China's total.
A recovering housing market, record level U.S. exports and improved unemployment numbers are all key factors pointing to a slow but steady economic recovery in the United States. But while companies are celebrating their profits and looking at improved sales in the months and years ahead, far greater concerns loom on the horizon for shippers as the ever talked about driver shortage becomes a reality.
Analyst Insight: During 2012, high-tech industry executives recognized that optimizing supply chain operations is directly related to profitable growth, higher operating margins and capital efficiency - each of which helps create value. While new products matter, factors such as selection, price, availability and service also enhance the buying experience. - Gene Tyndall, Executive Vice President, Tompkins International