Supply Chain Management woes on the rise
Disruptions to the flow of a business’s supply chain can be crippling to the overall operation, and over the last several months, many of these disruptions have caught the eye of the media. Companies seem to be struggling to control their supply chains. As businesses continue to recruit suppliers overseas in this age of globalization they expose themselves to greater risk. They are not only outsourcing production processes, but also their image. In a recent report released by Airmic, the Association of Insurance and Risk Managers in Industry and Commerce, it is noted that adequate measures are not being taken to mitigate risks. Furthermore, many firms do not have proper response strategies for disruptions in place.
Click here to read about further findings from this report.
The Cloud is forecasted to have a big impact on Supply Chain Performance
Before the move of Western and European production to offshore sites in Asia, supply chain visibility was a lot less complex. A domestic carrier was often the only party responsible for a certain shipment so keeping track of a specific product as it moved along the supply chain could have been handled by a simple phone call or email. Today’s international supply chains are much different as any one shipment may pass through the hands of 8 or more trading partners before arriving at its destination. This of course poses serious challenges to the concept of supply chain visibility.
One proposed solution is a cloud-based multi-user platform on which various parties involved in the supply chain connect with each other and share any scheduling changes, various announcements, service options and the like. In essence, a supply chain community can be created in the cloud in order to create more visibility and build relationships amongst the key supply chain clients and customers.
Click here for the full story.
Is there a new perception of Chinese manufacturing?
Since the early 1950s, China has been the international hub for manufacturing. With the capacity to produce everything from cars to clothes, it is no surprise that so many western businesses take advantage of the cheap labor and high output. While offshoring production promises considerable cost reductions, manufacturing in China is often associated with a sacrifice in product quality. This issue has resulted in the “made in china” label becoming a symbol of cheap, unsafe mass-produced goods. However, despite this notorious reputation, it seems standards are rapidly improving.
According to an article which was featured in the Huffington Post this week, Chinese manufacturers now offer state-of-the-art facilities which are cleaner and safer than ever before. In addition, Chinese managers at every level of the operation put a much greater focus on quality management. Although this all sounds very promising, it seems businesses remain anxious. For example, China’s communist status has left 70% of Americans feeling wary about offshoring operations to China, while the recent hacking scandals have only caused further concern over the nation’s integrity.
For the full story click here.
Have a nice weekend!
