The Emerging Supply Chain Management Ethos
1:
Beyond Just-in-Time
New practices, values and approaches are emerging to better manage disruptions from experts at such organizations as PwC, Deloitte, TheWall Street Journal and Supply Chain Consultants. There
JIT dramatically improved efficiencies and cash management over the last several decades. However it has been harmful in situations like today. According to John Konrad, founder and CEO of gcaptain.com, “We’ve gone to this fragile, just-in-time shipping that we saw absolutely break down.” In many industries, especially for ones dependent on China, inventory is carried on the high seas and not in local warehouses. Most experts are recommending a better balance in maintaining some local inventory that is more easily accessible as part of risk management.
2:
Single Sourcing is No Longer Recommended
seems to be general agreement on four potential steps:
Companies are diversifying suppliers and contract manufacturing partners. They can no longer count on stability and follow a simplistic, cost-focused software algorithm. Many larger companies use multiple suppliers—even at marginally higher costs—to avoid losing business and disappointing customers due to potential supply chain disruptions.
4 Key Actions to Create a More Resilient Supply Chain
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