Analyst Insight: In order for businesses to succeed in an increasingly competitive marketplace, they must find new ways to add value. At John Deere, that means collaborating with dealers to expand the brand from selling equipment to offering solutions that improve the productivity of farming. For leaders in supply chain management, it means developing strategies that create value across the supply chain through innovation, responsiveness and agility.
- Robert D. Boyle, Director, John Deere Chair, APICS The Association for Operations Management
In recent years, supply chains have become longer and more complex, while the severity and frequency of supply chain disruptions seems to be increasing. In close cooperation with Accenture, the World Economic Forum recently presented a report, "Building Resilience in Supply Chains," at the WEF Annual Meeting in Davos, Switzerland. It indicates that significant supply chain disruptions reduce the share price of affected companies by as much as seven percent on average.
Analyst Insight: The talk in outsource circles these days continues to revolve around the need for bigger and better collaboration and innovation. Some articles talk about the end of outsourcing, but what they mean - and a better way to put it - is to think about the end of outsourcing relationships as we know them.
- Kate Vitasek, faculty, University of Tennessee's Center for Executive Education. and Founder, Supply Chain Visions
Analyst Insight: With the government of India recently liberalizing foreign investment into the country's retail sector, many global retailers are eyeing the country as the next expansion opportunity. The experience of early entrants into India's organized retail has shown that supply chain inefficiencies are among the top hurdles to profitability. The unique Indian context requires creative sourcing approaches and significant investment in training and retaining local skilled supply chain talent.
- Viktoria Sadlovska, Chief Research Officer, Prameya Research
Analyst Insight: Third-party logistics providers continue to be the recipients of outsourcing requirements and have grown to provide a critical business capability, but the business rationale in selecting an outsourcing partner appears to be changing. The use of 3PLs remains compelling, with shipping companies continuing to report productivity gains - along with cost reduction and service enhancement - but in discussions with clients, increasingly manufacturers are looking to leverage industry best practices and process knowledge as a first priority.
- Simon Ellis, Director, Supply Chain Strategies Practice, IDC Manufacturing Insights
President Barack Obama is trying to persuade the United States to adopt a cap-and-trade system to curb greenhouse gas emissions. But the European Union's Emissions Trading System "” the world's flagship effort "” is sputtering. European carbon permits, which traded at about €30 ($40) per ton a few years ago, are now hovering at about €5 per ton or less.
As talks are announced regarding a potential free-trade agreement between the two continental powers, which could simplify and revolutionize the €450 per annum trans-Atlantic trade there are rumblings in UK freight forwarding circles that another agreement, potentially a precursor to the main agreement and involving the security concerns when shipping goods between the partners, does not appear to hold all that it originally seemed to promise.
United Parcel Service of America (UPS) has formed a partnership with electronic circuit boards manufacturer, Jabil Circuit, to provide reverse logistics services globally. Under the partnership, UPS's logistics and distribution business unit and Jabil's aftermarket services division will provide optimized reverse logistics solutions for return and repair programs to original equipment manufacturers, service providers and enterprises.
Swiss manufacturer ABB has said it will focus on reducing cost to offset economic uncertainty. In order to combat the sluggish global economy that has damaged sales for many providers of industrial equipment, ABB has focused on the bottom line. "In the short term, there are still a lot of questions around the pace of growth in Europe and the U.S. and the timing of the rebound in China," said Joe Hogan, chief executive officer of ABB.
The International Supply Chain Education Alliance (ISCEA) announced that the ISCEA Ptak Prize is offering 1,000 scholarships for 3rd- and 4th-year Saudi Arabian university students. The scholarships allow the eligible students to obtain internationally recognized, CSCA (Certified Supply Chain Analyst) qualification free of charge. This initiative is to support the kingdom's supply chain and human capital development goals over the next ten years. Each year ISCEA Ptak Prize will award 100 scholarships with the total value awarded more than $1mn.