Randall Manufacturing
Archive | Printer Friendly Version | Send to a Friend | www.mhi.org | MHI Solutions magazine February 27, 2013
The New York Times
Major storms like Hurricane Sandy and other unexpected events have prompted some companies to modify the popular just-in-time style of doing business, in which only small amounts of inventory are kept on hand, to fashion what is known as just-in-case management.

The shift has led retailers and logistics companies to alter supply chains by adding distribution hubs, according to the CoStar Group, a real estate research firm in Washington. In turn, the hubs are creating real estate opportunities in markets on and off established distribution paths, including growth in markets outside the traditional seaport hubs on the East and West Coasts.
The complexity of global supply chains – and the potential dangers therein – is perhaps best exemplified by Apple and Samsung. These two smartphone giants generate billions of dollars in revenue each quarter, but each could potentially be losing a billion dollars every quarter if they aren't properly managing their revenue..

The global supply chains that manufacturing and technology companies such as Apple and Samsung rely on can create as many problems as they do opportunities. From the number of partnerships involved to the multiple, overlapping, tiered incentives and promotions that help drive partner performance, the complexity of revenue throughout the supply chain makes efficient revenue management crucial to any company's success. Here's why.
Material Handling & Logistics
The launch of amazonSupply.com to serve the B-to-B ecommerce niche is seen by many independent wholesale distributors as a major threat. However, according to Brian Strojny, CEO and co-Founder of insite Software, wholesalers and distributors have strengths this new entity doesn’t, and they should be developed.

In his new whitepaper, “AmazonSupply.com: Can Today’s Distributors Compete?,” Strojny answers in the affirmative, offering several strategies. One of the chief advantages established wholesalers and distributors have is the ability to let customers select specific shipping carriers to ensure the best rates, consolidate orders to reduce shipping costs, and invoice for orders in the customer’s preferred format, the author maintains. They should also leverage their experience with coordinating less-than-truckload and full truckload shipments—something Strojny says is foreign territory for amazon.com.
Goff Enterprises
The Press-Enterprise
Lear Corporation (NYSE: LEA), a leading global supplier of automotive seating and electrical distribution systems, today announced the presentation of the Lear "Supplier of the Year" Award, the highest honor Lear can bestow upon a supplier, to 13 suppliers based on their outstanding performance during 2012.

This year's Award recipients demonstrated excellence in quality, innovation, delivery, service and competitiveness during 2012. In addition, this year Lear presented its first award to honor a supplier for their significant contributions to the community.
Supply Chain Brain
As much as 80 percent of the operational budgets in most oil and gas companies are earmarked for supply chains - primarily for materials and services provided by third-party suppliers. Due to the size of this percentage, many companies have over the years targeted supply chains for cost cutting and efficiency improvements.

With many new production wells being developed at challenging offshore locations and with the critical need to keep the cost of marginal field development at a minimum in order to drive profits, optimal logistics and supply chain solutions are necessary to keep the process as smooth and visible as possible.
In the year ahead, more than half of U.S. CEOs (53%) plan to strengthen engagement with key suppliers to both minimize costs and maximize supply chain flexibility and delivery performance. This according to the PwC 16th Annual Global CEO Survey.

The report predicts more strategic alliances and partnerships in 2013 as CEOs seek to increase their companies’ ability to swiftly respond to demand changes to best ensure uninterrupted business operations. Globally, industries most focused on supply chain engagement include industrial manufacturing (84%), consumer goods (80%), energy, oil and gas (79%) and technology (76%).
Food Logistics
In the fast moving world of food and beverage warehouses, reducing spoilage and improving order and shipment accuracy is essential for business. Utilizing the latest warehouse management systems (WMS) can assist warehouse managers towards that goal.

Recent government regulations coupled with the need to manage and increase warehouse velocity and throughput is driving food and beverage companies to implement and upgrade warehouse management systems.
Inbound Logistics
The maze of challenges that makes up the global supply chain demands that logistics professionals never stop developing new skills and enhancing existing ones.

Here are five core competencies that supply chain professionals need to master—and continually improve.
Supply Chain Brain
In the last decade, the power of the consumer products supply chain shifted from the manufacturer to the retailer. It is now shifting to the shopper. This is changing the nature of trading relationships and offering new opportunities.

The opportunity from the shift in power is both enabled and enriched by new forms of technologies. The rise of digital technologies –mobility, social and e-commerce – is fueling a new, and powerful fire underneath the traditional consumer goods manufacturer to transform their supply chain processes. The opportunity is to build a customer-centric supply chain that can better serve the customer at the four moments of truth in the cycle of Digital Path to Purchase. These four moments are: putting the product on the list, the decision to put something in the cart, the check-out, and post-purchase satisfaction.
It's a worthy goal and one the company is pursuing with zeal as it expands its non-hardware offerings in continuation of a reorganization program that has seen the company exit the PC manufacturing market. To achieve this objective, manufacturers can also glean some lessons from the mini-revolution of smart meters occurring in the power market.

The concept of smart metering has been around for years but the product is finally arriving at customer and within years I believe they will dramatically alter the relationship between users and producers of electricity and gas. Power companies in the United States are replacing old electricity meters with the first-generation of smart meters, reproducing what has been going on in Europe for quite awhile.
Material Handling & Logistics
Research in Germany and the Netherlands found hazardous levels of gases and vapors in around 20% of all freight containers. This represents a hazard to staff responsible for inspecting, stuffing or destuffing these containers.

It is therefore necessary to examine containers before entry. This is usually done using gas detection techniques that help assess the substances of greatest concern.
Naylor, LLC
Supply Chain Digest
U.S.-Mexico commercial cargo-crossing practices may soon change. That change would remove the entrenched Mexican Customs Brokers' control of 75% of the cross-border commercial traffic revenue, amounting to a hidden tariff estimated to be $2-3 billion each year. This unofficial tariff is the direct result of current Mexican Customs Brokers' control.

Normally, the Custom Broker practices of trading nations involve two fundamental types of activities, the outbound Broker functions and the inbound Broker functions, with each trading nation's brokers performing 50% of the clearing process. However with Mexico, the Mexican outbound processes and in-bound process, and the outbound U.S. broker processes are controlled by Mexican Customs Brokers. That means that the outbound process of U.S. goods being exported to Mexico by land conveyance, normally a U.S. function, is in the exclusive hands of unlicensed Mexican Forwarding Agents as opposed to federally-licensed U.S. Brokers and Forwarders.
Logistics Management
Given the recent events related to cyber attacks on U.S. media outlets, manufacturers and supply chain managers have a heightened awareness of their own vulnerability.

The increasing use of applications outside the enterprise via the web and cloud computing infrastructures makes security even more difficult to achieve, say experts. Fortunately, it’s not too late to ramp up your defenses.

A major industry event – the RSA Conference – gets underway this week in San Francisco designed to address logistical gateway concerns large and small.
Naylor, LLC


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