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Entries in supply chain network optimization (2)

Thursday
01Oct2009

Trend in near-sourcing instead of outsourcing overseas

Companies like Tesla Motors are re-thinking their manufacturing outsourcing strategy and looking at near-sourcing their crtitical components.  Tesla just shifted production of their 1,000 pound batteries from Thailand to near their facility in California.  With volatility in fuel costs and overall high freight costs, there has been a shift towards "reverse globalization".  Another factor in this trend comes from increased strength in Asian currencies which has made outsourcing to be less attractive to manufacturers.  How will the trend of near-sourcing affect you and it makes sense to evaluate whether this strategy makes sense for you. 

Wednesday
02Sep2009

New Thinking in Supply Chain for Tough Times – and Beyond

I read an article from Dan Gilmore of SC Digest that discusses how companies are looking for new ideas on how to use their supply chains in dealing with the downturn and how to prepare for the recovery.  Companies should consider work on projects designed to improve their supply chains so that they are more competitive as the economy improves.  Areas that companies are looking to make improvements include supply chain network redesign, supply chain reorganization, SKU-rationalization projects, aligning metrics with people and the way you deliver value to the customer.  Additionally, it makes sense to eliminate silos of optimization in an organization so that there is a holitic view and decisions are made with the entire supply chain in mind instead of optimization of one area at the expense of another. 

http://www.scdigest.com/ASSETS/ON_TARGET/09-08-31-1.PHP?CID=2682