@Risk

Recent global events (civil unrest, volcanoes, the Japanese earthquake, etc.) have focused new attention on the importance of supply chain resilience. Incidents like these underscore how globalization has connected companies, suppliers, consumers and the world around them in new ways.

How should manufacturers respond to this intricate interdependence?  Are there specific steps they must take to achieve excellence in today’s connected marketplace?

A new whitepaper from PricewaterhouseCoopers (PwC) deep dives into these questions and concludes that essentially, there are five key issues that play an important part in determining whether manufacturing companies will rise to the level of excellent, adequate or merely mediocre. Those five key issues are:

• Identifying and preventing supply chain risk
• Linking demand planning with the whole value chain
• Making customer and supplier collaboration real
• Addressing lifecycle opportunities and demonstrating sustainable value
• Attracting the people and skills needed for the future

In the report, PwC does a good job of breaking down the first bullet point, the task of identifying and preventing supply chain risk. Ultimately, the firm recommends that you mitigate supply chain risk by: (more…)

What are supply chain professionals thinking about as they look ahead into 2011?

A recent survey conducted by eyefortransport in September and October 2010 reveals some intriguing insights about their mindset –and the results are largely positive. For example: (more…)

The World Shipping Council (WSC) and the International Chamber of Shipping (ICS) want all loaded containers be weighed at the marine port facility before they are stowed aboard a vessel for export.

In a joint statement issued last week, the WSC and ICS urge the International Maritime Organization (IMO) to establish an international legal requirement that all loaded containers be weighed at the marine port facility before they are stowed aboard a vessel for export.

According to the WSC and ICS, In the absence of a legal requirement that marine terminal operators perform a weighing function for all loaded (“stuffed”) containers before vessel loading, it seems likely that a significant number of unweighed and overweight containers will continue to pose a risk to safe ship operations, to ships’ crew, and to other personnel in the transport chain. In addition, overweight containers threaten operational reliability and add to liability claims, operating costs, and administrative expenses.

Specifically, WSC and ICS propose that: (more…)

While there’s no doubt that new approaches to supply chain management are gaining a foothold at many companies, most businesses today still see cost as their main priority.

In fact, a recent KPMG survey polled nearly 200 senior-level executives from the aerospace, metals, engineering and conglomerates sectors across North America, Western Europe and Asia-Pacific, and it revealed that: (more…)

Analysts estimate that India’s retail sector is worth $450 billion. However, India’s government has kept this giant marketplace largely closed to foreign firms.

Could all that be about to change?

Late last month, Indian officials circulated a discussion paper about easing up on the restrictions, and not surprisingly, that move has ignited international debate. As it stands now, overseas firms can only operate in India as wholesalers and they are required to partner with domestic firms. But, a few weeks ago, Walmart said it could open “hundreds of stores” in India if the country unlocked its retail sector to foreign investors.

Of course, achieving that goal would require significant improvements to the supply chain. As Reuters points out,  “in a country where at least 40 percent of produce is wasted because of inadequate storage and transportation, large investments in warehouses, refrigerated trucks and other amenities are needed.”

Currently, organized retail accounts for only 6 percent of the total retail sector in India. The remainder is in the hands of “mom and pop” shops, which rely mostly on farmers and other local suppliers. Overhauling the system to accommodate retailers like Walmart could take years. In fact, the managing director and chief executive of one of the few Walmart wholesale ventures allowed in the country, predicts India needs at least a decade to establish a supply chain of “international quality and standard.”

A decade and plenty of foreign capital, that is. What investment –in time, effort and resources –would you be willing to make in order to gain market share in the world’s second-fastest growing major economy?