Having been in the industry for more than 35 years, I remember when supply chains were much more straightforward than they are today. In fact, I even recall when the term “supply chain” first started being widely used.

Today’s supply chains cover exponentially more miles, connect many more trading partners, are increasingly complex, and employ a constantly changing set of global capabilities.

A large part of this transformation has been the evolution of China from a primitive, low-cost manufacturing location to an ever-advancing global supply chain hub. Now, more than ever, companies are looking to China to improve service, reduce transportation costs and decrease inventory costs by using that country’s hubbing and consolidation capabilities.

A recent Tompkins report, China is Changing Supply Chains Around the World: Facts and Trends, explains how to get the most out of China’s supply chain activities.  The paper also explores China’s growing market for consumer goods that many companies will want to capitalize on in the near future.

An important tip: If your company is not already working with local, knowledgeable subject matter experts in China, then now is the time to begin. A “boots on the ground” strategy is the secret to conducting successful business engagements in China.

What are your plans for China? What trends do you see in this portion of the global market?

Go! Go! Go!

Jim

Resources

China is Changing Supply Chains Around the World

Webinar: Special Briefing on Opportunities in China’s Warehousing Market

Sourcing 2.0: China Strategy for the Fortune 1000

The Tompkins’ Emerging Technology Center (ETC) is preparing for some special visitors over the next couple of months.

In April, we have groups coming from the NASSTRAC Logistics Conference & Expo. And in May, a tour of the ETC is planned during WERC’s 2011 Conference.

So what is the ETC all about, you may be asking? It is a unique facility in Orlando, Florida, not far from Mickey Mouse’s house in Disney World. It lets companies take advantage of a fully functional, automated warehouse so that they can test live solutions while maintaining ongoing operations. It includes:

• Integration and testing: Compare and evaluate equipment and compatibility before implementation.
• Technology evaluation: See how material handling modules, subassemblies and software work together before installation.
• Employee training: Train employees in a live, hands-on environment for realistic operations and maintenance instruction.

At the ETC, it’s easy to see firsthand how integrated equipment, technology, training and support all coordinate to keep supply chains running smoothly.

What technologies or equipment would you like to see in action at this facility? You have an open invitation to visit. Give the ETC staff a call at 407-362-0362, or 407-362-0383, or send an e-mail to ETC@tompkinsinc.com.

Go!Go!Go!

Jim

More Resources:

Tompkins’ Emerging Technology Center Demonstrates Royal 4’s WISE Warehouse Management System, including Voice

RedPrairie Warehouse Management and Workforce Management solutions now available for demonstration at Tompkins Emerging Technology Center

ETC fact sheet (PDF)

Schedule a tour of ETC

Data is only an advantage if you understand three key things: how to collect it, how to react to it, and how to transform it into successful strategy.

As former U.S. Secretary of State Colin Powell once noted, “Experts often possess more data than judgment.”

Certainly, the same holds true for supply chain data. You can collect mountains of data but what are you comparing it to? And what payback are you receiving from the time and energy spent gathering, interpreting and analyzing this information?

I know that you’ve heard of Business Intelligence. Now, companies have the opportunity to dig deeper into Supply Chain Intelligence SM.  Basically, Supply Chain Intelligence equals analytics plus benchmarking and best practices. It’s a new way of turning the supply chain inside out to understand company operations from both an internal and external angle.

It uses scorecards as an easy way to view how areas of the organization such as supplier relations, inventory and transportation are performing as compared each other and to leaders in your industry. Even better: Supply Chain Intelligence uses a powerful SaaS platform.

So, less time collecting and analyzing data and more time reacting to it to improve operations – this is the right way to use “intelligence” and the wave of the future.

Go!Go!Go!

Jim

More Resources

Supply Chain IntelligenceSM: Next-Generation of Benchmarking and Analytics is Powered by SaaS

Positive feedback on Benchmarking News

Webinar: Next-Generation Supply Chain Intelligence: Analytics + Benchmarking

Photo Credit: Jorge Franganillo

It was a big story that wasn't told in the news media, but for any company with a China strategy or any company who is planning one, it's very important. The highly positive performance in China by US companies in 2010 was the significant story that was missed by media after the AmCham Shanghai survey of business executives was published earlier this year.

The headline should have been, The Importance of China to the Health of US Firms. But after the survey results were released, the media frenzy that followed focused on US-China relations, trade practices and issues around the survey.

The overlooked yet most critical take-away from this major China business survey of hundreds of executives was the success that the majority of companies have experienced as their market share rose and profitable growth continued to increase. The survey showed a great deal of optimism about China business strategies over the next year and in coming years.

For more analysis and insight into the survey results, listen to this interview with Steve Ganster. Steve is the general manager of Technomic Asia, which helped conduct the survey. He talks about where this optimism is coming from, and what Western companies should expect now and in the future when establishing a China strategy.

More Resources

China Business Blog and Podcast - US Business Execs in China Indicate Positive Growth

U.S. businesses see 'impressive financial results' in China

Supply Chain Challenges in Asia

 
Photo Credit: phogel

Over the past few weeks, I have been asked to share my thoughts on some serious issues:

• The impact of political upheaval in North Africa and the Middle East on fuel prices and global supply chains; and
• The impact of the Japanese earthquake and tsunami on the global economy and supply chains.

An important note here – I have no particular insight into the political happenings in North Africa or the Middle East. And except for my natural heartfelt concern for the people of Japan, I have no qualifications or expertise on natural disasters and their terrible aftermath.

However, I do have a few decades of supply chain expertise, and so I have been presenting my informed views in this area. To bring you up to speed, what I have been saying is that uncertainty is certain, expect the unexpected, and be sure that you have contingency and mitigation plans in place to cover supply chain risks.

Our hearts go out to those in Japan dealing with the earthquake’s aftermath and those around the world facing uncertain times. Global supply chains – vital to getting supplies to victims and to keeping their economies growing – are also experiencing uncertainty. It would have been impossible to fully predict the events in North Africa and the Middle East or with the Japanese earthquake. But I did recently predict that “uncertainty is certain” and guess what?  It is.

Over the next few months, other events are bound to develop that will continue to inject high levels of uncertainty into supply chains. Please, do not wait for such events to catch you off guard and leave you scrambling to try and minimize damage to your business. Now, go ahead and evaluate your company’s risks, anticipate the unexpected, and analyze the uncertainties that exist in your supply chain.

Whether it is fuel prices, disaster recovery, commodity prices, transportation capacity, port availability, labor availability, or another factor, get out ahead of the “unexpected” implications.

Supply chain disruptions are simply a part of the realities of today’s global supply chains. It is how you prepare for and lead through this uncertainty that will seal your company’s fate.

More Resources

Supply Chain Consortium Report on Uncertainty

Is Your Company Prepared for Anything? Supply Chain Disruption Calls for Careful Risk Management

The Supply Chain is a Scary Place, World Trade Magazine

Photo Credit: DerekGavey

Every day, we hear about the latest gadgets, software, electronics and technologies that promise to enhance our lives.

And what you buy as cutting-edge today can be old hat tomorrow. So yes, new technologies are infiltrating our lives with constant upgrades and improvements that are hard to keep up with, but they have also proven to be useful in many ways. 

Unfortunately, while the rest of the world has been advancing, a number of companies were forced to go extremely lean during the recession. They cut back on supply chain information technology and ultimately became stagnant in ways that would really serve to boost their profitability and customer service.

While it may have made sense to cut back in the past few years, now is the time for companies to regain that competitive edge and strategically set priorities for IT.  It’s a prime time to decide whether you will upgrade or replace your technology, establish the next step in your WMS strategy, and get a handle on SaaS and the Cloud. 

The list doesn’t stop there.  Read more about industry experts’ Top 11 Priorities for Supply Chain IT in 2011 and figure out how your company can act now to secure profitable growth this year.

What are your 2011 IT goals for supply chain? Do you have others that are missing from this list?

Go Go Go!

Jim

 
Photo Credit: eric.surfdude

Let’s be honest.  No matter what we read in the news or hear from our colleagues, we’ve all got our own analysis of the years past and insights about the years to come. 

Much like picking out a fantasy football team, we strategically position ourselves, our companies and our decisions based on our own predictions. Then we hope for the best.

Sometimes, people get lucky with their draft of predictions. Then at other times, they probably wish they’d consulted someone else.  Whether you’re the expert in your specific area of supply chain or you have a general working knowledge of it all, there’s bound to be a few areas where you could use some expert guidance.

Recently, dozens of industry analysts and executives got together and provided just that – expert guidance and outlooks in Supply Chain Brain’s 2011 Resource Guide. 

In the guide, supply chain experts weigh in on more than 32 industry sectors. Gene Tyndall, an EVP with Tompkins, provides insight on why old ways of management won’t work as the economy recovers.  A few other Tompkins analysts comment on the high-tech industry, historical planning in the consumer packaged goods industry, integration challenges in pharmaceutical and biotech industries, and inventory performance.

In this recovering economy, it can’t hurt to listen to what experts in the supply chain world have to say and add it to your own knowledge base.

What’s your outlook for 2011? What do you already see working for you and what do you have planned?

Go Go Go

Jim

Photo Credit: Ben Newcomer

I’ve been known to hold onto a thing or two when it’s past its prime. I have my favorite mug, my favorite shirt, and I even make sure I squeeze every last drop out of my toothpaste tube.

And don’t get me started on the laptop that I kept until the hard drive decided that it was at the end of its life cycle.

Like me, most consumers want to get as much use as possible out of a product. And while we have seen consumer spending rising lately in a number of sectors, folks really do seem to be holding onto products for a longer period of time today.

Is it a permanent sign of shifting values or a reaction to the recession, or both? I certainly cannot know what is in the minds of all consumers, but this New York Times article supports my observations that product life cycles seem to be growing.

As we continue to preserve our belongings, this not only helps us cut costs, but it has the added benefit of environmental sustainability. Not to mention, we are able to spend our money in other areas.

So with this ability to spend, we are not expecting a potential decrease in consumer demand in the coming year. As the article on Bloomberg News suggests, there is pent-up demand – and a 3.2% increase in consumer spending is expected for 2011.

Overall, the economy is growing and this can be attributed in part to consumer spending. Therefore, it seems that holding onto products longer and increased consumer spending are not necessarily incompatible. This concept shatters some old patterns of thinking and is worth exploring further.

What have you been seeing lately in relation to consumer spending? Do you think extended product life cycles and increased consumer spending can peacefully co-exist?

Go!Go!Go!

Jim

More Resources:

White Paper: "Sourcing and Selling in Challenging Economic Times: How Retailers Should Re-think Their Operations and Methods"

Consumer Products

Photo Credit: hindsightbrid