My perspective on supply chain comes with a strong semiconductor technology bias, a partiality for supply management and an appreciation of operations with the processes that surround it. Coming from the semiconductor and telecommunications industries, I have seen the need for innovation, quality and cost management. Being an engineer, I like data; having worked in […]
Poor Data Clouds Supply Chain Visibility Read More »
The concept of the acceleration of everything has fascinated me since I became Nortel’s Chief Procurement Officer many years ago. Prior to that position, I had worked in semiconductor technology development and Operations and had spent some time in China negotiating and running joint venture companies. I was aware of Moore’s law and the enabling
The Acceleration of Everything Read More »
Readers who have followed my writing in blogs and whitepapers may find this blog out of character. Its premise is that the value delivered by EMS companies (contract manufacturers) is higher than the amount they charge for services. While my message is pay for value, it often comes across as too many are paying too
The True Value of Contract Manufacturers Read More »
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 »
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 »
I find one reality TV show interesting because it actually represents reality. …At least, it’s the reality that I see through the supply chain and procurement lens of Freebenchmarking.com and Component Cost Estimator as it mirrors typical purchasing negotiations. The show is Pawn Stars, about a family-owned pawn shop in Las Vegas. In this show,
Pawn Stars: Lessons for the Supply Chain Read More »
Based on some of the replies to my blogs and conversations with customers, I have noticed that some individuals are confused over single and sole sourcing. I will start with definitions and then share some observations and thoughts on the subject. Sole Sourced: a component for which there is only one manufacturer capable of making
Thoughts on Single and Sole Sourced Components 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 »
