Improved U.S. competitiveness and rising costs in China will put the United States in a strong position by around 2015 to eventually add 2 million to 3 million jobs and an estimated $100bn in annual output in a range of industries, according to a new report by The Boston Consulting Group (BCG).
Mexico, the United States' southern neighbor offers transportation distances a fraction of those from Asia, a labor force a good deal cheaper than domestic workers, and a country causing fewer headaches about intellectual property and other trade concerns. But in recent years, drug-related violence along the border has caused some manufacturers to be more cautious about making the move to Mexico.
When Amazon announced its $775m cash deal to buy Kiva, a robot automation fulfillment center player, it put many of its existing retail clients in a bind. This includes current Kiva clients - Walgreens and Saks, among others - plus other recent (and possibly current) customers, such as Gap, Crate & Barrel, Staples, Dillard's, Toys 'R' Us and Office Depot.
There has been a recent renewal of interest in collaboration among supply-chain partners, according to Ann Grackin, chief executive officer of ChainLink Research. Reasons include a greater reliance on outsourcing and the general trend of globalization of trade. Yet another element is the desire to draw on sophisticated technology, including video, teleconferencing and social networks, to link all players throughout the chain. With such factors in mind, says Grackin, "you need working relationships with trading partners to be successful."
Determining the best way to store and ship products is a crucial part of your business. There are a number of options for doing so, and two of these are becoming increasingly popular: drop shipping and third-party order fulfillment.
APQC, which specializes in benchmarking and best practices research, has released a report that identifies 14 key category management best practices grouped in four areas that are necessary for the procurement organization to become a true partner and sustainable value driver for business.
A rise in cargo theft reporting is attributable to improved collaboration and data sharing between the insurance and transportation industries and law enforcement, according to a report from CargoNet.
The last two years have brought an explosion of Software as a Service (SaaS) solutions. Both new app players and traditional enterprise software license providers have provided new versions of their software and services to ensure a market presence in the cloud delivery model. Along with this change we have witnessed new models in pricing strategies. The problem is that it is very hard to compare pricing - not just between the competitors - but also for same-company cloud vs. on-premise options.
Analyst Insight: The Warehousing Education and Research Council's latest benchmarking study shows that the performance gap between best-in-class and "Major Opportunity" warehouses remains large. In order to close the performance gap, Major Opportunity warehouses need to understand how to find their process weeds and pull them up by the roots. By aligning shop floor metrics to corporate strategy, companies link accountability to where the work gets done and will begin to close the gap. - Joe Tillman, senior researcher, Supply Chain Visions
Analyst's Insight: Every day in the trade press and across our laptops, we read about infrastructure weaknesses, transportation shortages, closing businesses, unemployment rates and all the other ills associated with the dreaded "R" word - recession. We know from our members how challenging these past few years have been, and we support and admire the collaboration and focus on best practices that are clearly evident and becoming more and more important in logistics. - Michael Mikitka, CEO, Warehousing Education and Research Council