In an era where cost-cutting is a common trend you probably hear about at least once a day, many companies have started turning to their supply chains, specifically sourcing and procurement functions, as a main area to help with boosting revenue and reducing costs. According to the 2009 Global Survey of Supply Chain Progress from CSC, Supply Chain Management Review, the Council of Supply Chain Management Professionals and Michigan State University, 88% of respondents reported that objectives are in place for purchasing departments to produce cost-savings in the next year.
“We see this trend as evidence of the fact that supply chain is finally becoming entrenched as a company-wide improvement effort. Leaders are implementing strategic supply chain efforts to transform business processes to achieve near-optimum operating conditions. At the same time, most firms identified as followers and laggards have not reached the limit of what can be done to enhance financial performance with their supply chains.”
With this new reliance on supply chain functions, it becomes more important to ensure maximum visibility into the supply chain so that all operations are running as smoothly as possible. Using a Supply Chain Visibility solution such as Management Dynamics can help you ensure visibility, communicate efficiently with carriers and suppliers, and make accurate decisions relating to diverting inventory or resolving bottlenecks.
As globalization mores forward, it is becoming so that international sourcing is no longer considered a competitive advantage, but a necessity for companies. People are realizing this, and more and more companies are expanding operations to a global level. Since there are major differences between global and domestic supply chain strategies, this can be a little overwhelming. World Trade Magazine has published an article with helpful advice for companies who are in this situation.
Here are a few good tips from the article:
Rule Number One: Take Your Time!- The top mistake executives make in going global is being unrealistic about their timelines.
Know Your Terms – Negotiating an international sales contract? “Both parties need to pay as much attention to the terms of sale as to the sales price,” reminds the International Business Institute.
Global Sourcing 101 for Retailers – Global and domestic retail supply chains share the need for speed, agility and flexibility regardless of length of chain. However, domestic supply is simply not as complex or risky. Global supply brings an increased risk for errors, delays, regulatory and customs challenges and a need for greater, broader visibility to manage the flow of product and information.
Want to learn more about managing your supply chain? Take a look at one of our Supply Chain Visibility GTM Success Kits- a zip file emailed to you containing white papers, case studies, and information on how you can ensure visibility, communicate efficiently with carriers and suppliers, and make accurate decisions relating to diverting inventory or resolving bottlenecks.
Come join Management Dynamics at the CSCMP Annual Conference later this this month! The conference will be held September 20-23 in Chicago. This is a premiere event for supply chain professionals looking to learn techniques for cutting supply chain costs, network with colleagues, discover new ways to remain competitive, and get solutions that will increase the efficiency of your supply chain. AND CSCMP has extended their early bird registration rate until 9/19.
We’ll be showcasing our solutions in CSCMP’s Learning Exchange on September 21, so be sure to stop by and say hello! (Just interested in visiting the Learning Exchange? CSCMP is also offering a one-day pass strictly to walk around the Learning Exchange at a significantly reduced rate.)
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