Security of supply is one of the most critical priorities of any supply chain; cost and compliance are the other top ones. Given how critical security of supply is, I am often surprised by how inadequate many due diligence programs are at getting to the heart of risk or ensuring that adequate agility exists to […]
Supply Chain Security & Maslow’s Hierarchy of Needs Read More »
In part 1, I talked about the influence design engineers can exert on procurement and the supply chain. This is often a negative influence that comes without proper education or information. What do I want top designers to know about supply chain design? Leverage Leverage is a critical factor in negotiations. Without it, you take
What Engineers Must Know About the Supply Chain, Part 2 Read More »
Accenture and others have reported that company stock prices can dropanywhere from 7.5 to 12 percent following severe supply chain disruptions. PriceWaterhouseCoopers estimates this drop at 9 percent and says that, for two-thirds of those companies, stock performance will still lag competitors a year after the disruption. If this is the case, why do we
What Engineers Must Know About the Supply Chain, Part 1 Read More »
Most supply chain professionals would benefit from some training in accounting. I am surprised by the number of times I encounter people holding positions of responsibility who just don’t understand the numbers well enough. I must admit that accountants don’t make it particularly easy. Take cashflow calculations as an example. There are two ways of
Supply Chain Accounting 101 Read More »
The results are in from the EBN poll on the Price-Supplier Equation. Fifty-five percent of respondents believe that the premium paid for being single sourced is greater than 10 percent, and more than half of these believe it is greater than 15 percent. This is a significant hike on cost and an unnecessary supply chain
Single Source Premium: Unnecessary Cost Read More »
I am a believer in using second sourcing as a primary security-of-supply strategy. I know some believe that close relationships with a single manufacturer can yield better overall value and better supply security, but I am not of that school. My position is that two sources provide leverage by creating competition, which is good for
Purchasing: Risks in ‘Virtual’ Second Sources Read More »
