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Change rules in your supply chain game

from Material Flows

The need to source and sell globally is running up against rising transportation costs. However, necessity being the mother of invention, I believe rising oil prices in the next year will result in shippers being able to take advantage of some game-changing supply chain options. We already are hearing how logistics service providers are offering ways to help clients get around the "pay me now, get your goods much later" requirements of overseas suppliers. For example, Amerinada Distributors LLC, a U.S.-based hydroponics supplies and accessories company, sources 60 percent of its annual inventory from a single Chinese supplier. This supplier requires payment upon order fulfillment, which can tie up Amerinada's working capital for weeks while their goods travel to them on a slow boat from China. more

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