Importers who sell to America's major retailers are preparing for a significant uptick in consumer spending this spring and summer, according to a recent survey conducted by Capital Business Credit (CBC), a non-bank lender that services the retail sector.
Although organizations must connect suppliers and customers around the globe, managing worldwide supply chains can cause cost increases and operational challenges, However, Aberdeen Group's latest research, entitled 2012 Best Practices for Closing the Loop on Multinational Transportation Procure to Pay, identifies best-in-class behaviors that enable the top 20 percent of performers to reduce invoice cost, yet process and pay faster than competitors.
Despite key factors that cause disruption throughout the global supply chain, there are opportunities for operators to save costs by tightening procedures to minimise accidents, breakdowns, delays and other risks, according to Laurence Jones, TT Club's director of global risk assessment.
Analyst Insight: Our research finds that very few companies have a good handle on supply chain risk. The dynamic nature of trading partner relationships, the depth and global footprint of multi-tier supply networks, and many other factors make building a resilient supply chain very difficult. However, those that manage supply chain risk well can gain market share when the inevitable disruptions occur, impacting their competitors. - Bill McBeath, chief research officer, ChainLink Research
Analyst Insight: There were more than 2,000 supply chain disruptions for publicly held companies in 2011. That, coupled with PRTM's 2010 global survey stating that over 90 percent of all companies plan to grow market share by manufacturing and selling in overseas markets, it goes without saying that our global supply chains will experience additional uncertainty, complexity and risk in 2012. And yet, the vast majority of manufacturers are fully unprepared for the complexity of manufacturing and servicing global customers with regionally customized products. - Gregory L. Schlegel, adjunct professor, Supply Chain Risk Management, Graduate Program, Lehigh University
As enterprises look to minimize complexity, improve inbound supply chain efficiency and reduce costs, there is a growing need for intelligent solutions that provide the visibility, optimization and integration required to ensure that every part, component and package is shipped using the most effective service level.
Initiatives such as the Global Supply Chain Forum, which resides at Ohio State University's Fisher College of Business, give the business world access to academic expertise and valuable research, says forum director Douglas M. Lambert. Such efforts are becoming more common, he says, adding that "the business community ought to be our laboratory."
A year after the Japanese earthquake and resulting tsunami, supply chain managers are reconsidering just-in-time strategies, according to a survey released by the Business Continuity Institute.
Although the Food Safety and Modernization Act of 2010 was passed nearly a year ago, and food and beverage companies have had a significant period of time to calculate and understand its impact, and implement traceability solutions, there are still many issues and processes to be resolved or implemented before food and beverage enterprises can be considered 100-percent compliant.