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Home    Membership    Members    Education    Products    Publications    Professional Credentials March 22, 2011

Stress test for the global supply chain
The New York Times    Share   Share on FacebookTwitterShare on LinkedinE-mail article
Day in and day out, the global flow of goods routinely adapts to all kinds of glitches and setbacks. A supply breakdown in one factory in one country, for example, is quickly replaced by added shipments from suppliers elsewhere in the network. Sometimes, the problems span whole regions and require emergency action for days or weeks. But the disaster in Japan, experts say, presents a first-of-its-kind challenge, even if much remains uncertain. More

Scarcity of semiconductors expected
Supply Management    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Japan's earthquake and tsunami could result in significant shortages of electronic components and prompt prices to dramatically rise, market research analyst iSuppli has warned. The disaster's impact could result in supply disruptions and higher prices for components, including flash memory chips. Japan is the world's largest supplier of silicon used to make semiconductor chips — 60 percent of the global total. More

Earthquake disrupts auto production in US, Japan
The Associated Press via NPR    Share    Share on
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General Motors says that a lack of parts from Japan will force it to halt production at its pickup plant in Shreveport, La. Meanwhile, Japan's major automakers are trying to find alternative parts suppliers and some dealers are raising prices for cars that are in short supply. It's the first time a U.S.-based automaker has stopped production in North America over parts shortages. Toyota Motor Co. and Subaru have slowed production at their North American plants to conserve parts. More

Global economic instability — business continuity planning essential for supply chains
Manufacturing Business Automation    Share    Share
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Insight Inc., a top international provider of supply chain planning solutions for some of the world's foremost companies, said that in an era of globe-spanning operations, recent unrest in the Middle East underscore the critical need to develop comprehensive business continuity plans in light of supply chain vulnerabilities. Economic instability and political unrest are increasingly commonplace across the globe, calling into question the survival of governments and economic policies that underpin critical planning assumptions: cost and availability of raw materials, energy and labor, duties, taxes, exchange rates, licensing and local content restrictions, and so on. More

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Collaboration vital to supply chain finance
Supply Management    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Collaboration across management functions is key to getting results from supply chain finance, a research firm has found. A survey of 145 finance professionals by the Aberdeen Group found that "enterprises which actively collaborate with executive management in their supply chain finance initiatives see both quantitative and qualitative benefits." While demands to retain cash within the business for as long as possible and the risk of supplier default are the two greatest pressures on supply chain finance, businesses still saw value in it, the research found. More

Social networks will change product innovation
Harvard Business Review    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Much is being written about the impact that new communication technologies and channels have on traditional marketing. The deeper question is: Will these new communication channels actually force material changes not just in the way companies market their products, but in the strategies and operations they use to develop and build those products as well? More

10 Common Inventory Mistakes and How to Correct Them

Written by Demand Solutions, a leading supply chain planning software vendor, this white paper is an anecdotal account of its customers’ most common inventory management mistakes along with best-in-class solutions to the problems. “With more than 2,000 customers around the world, we have witnessed countless cases of inventory management problems,” said Demand Solutions president Bill Harrison.

Top 10 companies for supplier diversity
DiversityInc    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The alignment between supplier diversity and community reputation and support is demonstrable. Companies that develop strong relationships with suppliers and help them through mentoring, financial education and financial assistance build brand loyalty that is reflected in their work force and consumer/client demographics. The data demonstrates a correlation between the human-capital results and the increasing prevalence of companies including supplier diversity in their requests for proposals and requiring second-tier supplier diversity. Here are 10 companies that have best practices in supplier diversity. More

Counterfeit parts in aerospace supply chain rising
United Press International    Share    Share on FacebookTwitterShare on LinkedinE-mail article
The U.S. Aerospace Industries Association warns that the volume of counterfeit parts in the supply chain is increasing and needs to be thwarted. In 2009, the U.S. Customs and Border Protection Service seized nearly $4 million in counterfeit critical technology components. "Regardless of how counterfeit parts enter the aerospace and defense supply chain, the ramifications can be significant," said AIA President and CEO Marion C. Blakey. "They can jeopardize the performance, reliability and safety of our products." More

McDonald's sets long-term sustainable beef, coffee plans    Share    Share on FacebookTwitterShare on LinkedinE-mail article
McDonald's has laid out plans to move to more sustainable meat, coffee and packaging. The company's Sustainable Land Management Commitment will require suppliers to gradually source food and materials from sustainably-managed land, though there are no specific timelines for now, and it is initially focusing just on beef, poultry, coffee, palm oil and packaging. Those five were chosen, with the help of analysis from the World Wildlife Fund, since they have the most potential to be changed to have lower impacts. More

Winning the war against potato waste
Farmers Weekly    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Potato processor Solanum is planning to dramatically reduce waste in the supply chain by improving quality in the field. War on Waste is a five-year project, which the firm started in 2008 to assess the level of waste produced in the potato supply chain and come up with practical solutions to reduce it. The project found that for every 1,000 tons of potatoes produced for a retail crop, just 583 tons made it to the consumer. That meant 42 percent didn't make it to the end market it was grown for. More

Wheat seen rebounding 11 percent as global stockpiles decline the most since 2007
Bloomberg    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Wheat stockpiles shrinking the most in four years means prices will keep rebounding from their worst slump in at least a quarter century. The grain will average $8 a bushel on the Chicago Board of Trade in the second quarter. Farmers reaped 15.4 million metric tons less than demand this season, the biggest shortage in four years, and stockpiles will drop 7.8 percent, the U.S. Department of Agriculture says. More

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Health care supply standards gathering steam
Health Data Management    Share    Share on
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Two months into a push by health care supply chain proponents to get industry adoption in 2010 of a Global Location Number, 556 organizations are amending their business processes and technologies to become compliant, according to standards development organization GS1. GLNs were developed to identify the location of a product or service, even down to bins, shelves, peg holes or racks. At least 10 group purchasing organizations have committed to adopting GLNs by Dec. 31. More

Prices of brand-name drugs skyrocket
Becker's ASC Review    Share    Share on FacebookTwitterShare on LinkedinE-mail article
Even though federal and state governments and payors are making sweeping moves to contain the cost of health care, the prices of brand-name prescription drugs are increasing rapidly, according to The Wall Street Journal. Investment bank Barclays Capital analyzed the prices of 130 drugs and found the average price increased approximately 6.9 percent in 2010. The increases hit a range of medicines, including insulin given to diabetics and injectables for rheumatoid arthritis. More

Global crude steel production up 9 percent in February
IndustryWeek    Share    Share on FacebookTwitterShare on LinkedinE-mail article
World crude steel production in February rose 8.8 percent from a year earlier to 117 million metric tons, the World Steel Association reported. Global steel capacity utilization for the 64 countries reporting to the World Steel Association was up slightly over January at 82 percent. The utilization ratio increased by 2.7 percentage points over February 2010. More

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