Tags |
|
|
Links |
|
|
Answer Upon - Riding The Waves Of Overseas Sourcing
I’ve been both a CEO and a consultant, so I’ve seen from both perspectives what goes right and what goes wrong when a consultant comes in to a company. Generally the CEO or the manager who hires the consultant tells the consultant what he or she wants. Often the manager is frustrated with something that is happening at the company and expects the consultant will have the expertise to “just fix it”. While the manager needs to set the expectations, of course, the consultant rarely gets to voice what he or she knows would make the consulting engagement more successful for both.Here is what your consultant would love to tell you about making him or her successful working on yo
Better Inventory Management Required
So, how does a company that is sourcing overseas take the increased variability into account, including lead-times, higher volumes and stocking strategies, while improving their performance? Many times these issues are addressed with higher inventory levels. But is that the answer?
An AberdeenGroup benchmark study released in 2006, entitled The Technology Strategies for Inventory Management Benchmark Report, and reported on Industryanalystsreporter.com, finds that companies adopting new inventory management technology are better able to manage supply chain complexity and can reduce inventories by 20 to 30 percent while simultaneously increasing customer service levels.
The study also outlines that
Related to the topic of problem-or-solution-oriented change is the topic of participation. But this issue of participation is more delicate than the previous one.This is about the amount of space for negotiation around the proposition. The proposition however is something that also needs time to ripe; or has there already been prepared one? Is the path to which the developments will lead already entered or is your organization gathered at a square and considering a next move: in any of the directions that are accessible from the square?Indeed the question is: who are gathered at the square? Talking about space, there is not enough room for the whole organization to
According to a recent CAPS Research study, entitled Effective Global Sourcing and Supply for Superior Results, almost half of all goods will be purchased offshore by 2010. The study also indicated that total goods purchased from overseas sources represented 31 to 40 percent of all purchases in 2005. There are significant advantages to sourcing material from overseas. The survey outlined that on average, companies with effective global sourcing strategies report cost reductions of 19 percent and a 12 percent reduction in total cost of ownership costs.
Sourcing overseas has become more of an accepted form of doing business within the fastener industry. Mark Cloud, VP of Sourcing for Wurth Service Supply, a fastener company located in Indianapolis, and one of 300 companies in the Wurth Group, a nine billion dollar company headquartered in Germany, indicates overseas sourcing is becoming extremely common in the fastener industry. “Many of our commonly used items are now only available through overseas markets,” said Cloud. Here is the other side of the pitch that you don’t hear. While your unit costs may go down, the protective layer of inventory needed to buffer supply risk, longer global lead times and increasingly complex administrative processes can chip away at any working capital improvement.
Expect Challenges and Delays
As companies begin navigating the waters of overseas sourcing, first and foremost they should expect longer and more varied lead times. Every day counts when trying to get stock available for sale. While you can expect longer travel with longer distances, overseas sourcing adds more variability. “We are seeing very different lead times with sourcing overseas,” according to Cloud. “Our domestic lead times for a special part may be about 12 weeks domestically, but we are seeing 24 weeks on average with overseas sourcing.”
Next, expect the purchase volumes to increase. “Overseas manufacturers are geared today to produce a very high volume, that’s how they offer lower costs, and that’s the way they sell the product,” according to Cloud. “In some cases we may have to bring over our entire annual volume, creating one of the biggest challenges that we face.”
One of the most important goals for any organization, a high customer service level, is also at risk. “When buying from overseas you have to pay much more attention when confirming and expediting orders,” according to Cloud. “Because there are so many more opportunities for something to go wrong, considerations like longer lead times, administrative processes, customs clearing, all contribute to longer lead times and can affect our service levels.” It becomes even more challenging to maintain high service levels, let alone work to improve service levels to customers.
Better Inventory Management Required
So, how does a company that is sourcing overseas take the increased variability into account, including lead-times, higher volumes and stocking strategies, while improving their performance? Many times these issues are addressed with higher inventory levels. But is that the answer?
An AberdeenGroup benchmark study released in 2006, entitled The Technology Strategies for Inventory Management Benchmark Report, and reported on Industryanalystsreporter.com, finds that companies adopting new inventory management technology are better able to manage supply chain complexity and can reduce inventories by 20 to 30 percent while simultaneously increasing customer service levels.
The study also outlines that
As a career coach, workers reveal their souls to me. Not just clients, where the relationship requires and benefits from, deep personal exploration -- but complete strangers send me emails, almost daily, about their work experience, their frustrations and dreams. Always, they ask, “What shall I do?”More often than not, they tell me that they’ve been working on a career shift for a long time – a year, or longer. And it’s clear that they have made little to no progress on their path.Granted, career change does take a long time…and people learn and grow in different ways. But to have worked for a year or two, and be no further ahead in terms of clarity suggests tha
Sourcing overseas has become more of an accepted form of doing business within the fastener industry. Mark Cloud, VP of Sourcing for Wurth Service Supply, a fastener company located in Indianapolis, and one of 300 companies in the Wurth Group, a nine billion dollar company headquartered in Germany, indicates overseas sourcing is becoming extremely common in the fastener industry. “Many of our commonly used items are now only available through overseas markets,” said Cloud. Here is the other side of the pitch that you don’t hear. While your unit costs may go down, the protective layer of inventory needed to buffer supply risk, longer global lead times and increasingly complex administrative processes can chip away at any working capital improvement.
Expect Challenges and Delays
As companies begin navigating the waters of overseas sourcing, first and foremost they should expect longer and more varied lead times. Every day counts when trying to get stock available for sale. While you can expect longer travel with longer distances, overseas sourcing adds more variability. “We are seeing very different lead times with sourcing overseas,” according to Cloud. “Our domestic lead times for a special part may be about 12 weeks domestically, but we are seeing 24 weeks on average with overseas sourcing.”
Next, expect the purchase volumes to increase. “Overseas manufacturers are geared today to produce a very high volume, that’s how they offer lower costs, and that’s the way they sell the product,” according to Cloud. “In some cases we may have to bring over our entire annual volume, creating one of the biggest challenges that we face.”
One of the most important goals for any organization, a high customer service level, is also at risk. “When buying from overseas you have to pay much more attention when confirming and expediting orders,” according to Cloud. “Because there are so many more opportunities for something to go wrong, considerations like longer lead times, administrative processes, customs clearing, all contribute to longer lead times and can affect our service levels.” It becomes even more challenging to maintain high service levels, let alone work to improve service levels to customers.
Better Inventory Management Required
So, how does a company that is sourcing overseas take the increased variability into account, including lead-times, higher volumes and stocking strategies, while improving their performance? Many times these issues are addressed with higher inventory levels. But is that the answer?
An AberdeenGroup benchmark study released in 2006, entitled The Technology Strategies for Inventory Management Benchmark Report, and reported on Industryanalystsreporter.com, finds that companies adopting new inventory management technology are better able to manage supply chain complexity and can reduce inventories by 20 to 30 percent while simultaneously increasing customer service levels.
The study also outlines that
Cubicles provide a professional touch, independence and uniqueness in offices. People could carry out their job peacefully without losing concentration. The basic purpose of cubicles is to reduce noise by checking the chatting behavior of the employees. The employees cannot get separate offices because it will not only be costly, but also occupy a big area. The cubicle, invented in the 1960s, is the right solution for these problems. Used cubicles can be bought at lower prices than their new counterparts; seek and ye shall find.In the beginning cubicles were accepted with mixed reactions. These surely give a decent look to the offices and make it possible to arrange the w
Expect Challenges and Delays
As companies begin navigating the waters of overseas sourcing, first and foremost they should expect longer and more varied lead times. Every day counts when trying to get stock available for sale. While you can expect longer travel with longer distances, overseas sourcing adds more variability. “We are seeing very different lead times with sourcing overseas,” according to Cloud. “Our domestic lead times for a special part may be about 12 weeks domestically, but we are seeing 24 weeks on average with overseas sourcing.”
Next, expect the purchase volumes to increase. “Overseas manufacturers are geared today to produce a very high volume, that’s how they offer lower costs, and that’s the way they sell the product,” according to Cloud. “In some cases we may have to bring over our entire annual volume, creating one of the biggest challenges that we face.”
One of the most important goals for any organization, a high customer service level, is also at risk. “When buying from overseas you have to pay much more attention when confirming and expediting orders,” according to Cloud. “Because there are so many more opportunities for something to go wrong, considerations like longer lead times, administrative processes, customs clearing, all contribute to longer lead times and can affect our service levels.” It becomes even more challenging to maintain high service levels, let alone work to improve service levels to customers.
Better Inventory Management Required
So, how does a company that is sourcing overseas take the increased variability into account, including lead-times, higher volumes and stocking strategies, while improving their performance? Many times these issues are addressed with higher inventory levels. But is that the answer?
An AberdeenGroup benchmark study released in 2006, entitled The Technology Strategies for Inventory Management Benchmark Report, and reported on Industryanalystsreporter.com, finds that companies adopting new inventory management technology are better able to manage supply chain complexity and can reduce inventories by 20 to 30 percent while simultaneously increasing customer service levels.
The study also outlines that
Advanced summary: For real estate agents, this articles offers advice on improving your real estate marketing program by combining your postcard marketing and Internet marketing channels.Your real estate marketing program should cover more than one channel or medium. When you combine multiple marketing channels to serve a common goal, you can accomplish more than if you simply used one form of marketing.Here's a specific example using real estate postcards along with your website:Real Estate Postcards + Website Lead Generation Many real estate agents use postcards to promote themselves within their community. In fact, real estate postcards
One of the most important goals for any organization, a high customer service level, is also at risk. “When buying from overseas you have to pay much more attention when confirming and expediting orders,” according to Cloud. “Because there are so many more opportunities for something to go wrong, considerations like longer lead times, administrative processes, customs clearing, all contribute to longer lead times and can affect our service levels.” It becomes even more challenging to maintain high service levels, let alone work to improve service levels to customers.
Better Inventory Management Required
So, how does a company that is sourcing overseas take the increased variability into account, including lead-times, higher volumes and stocking strategies, while improving their performance? Many times these issues are addressed with higher inventory levels. But is that the answer?
An AberdeenGroup benchmark study released in 2006, entitled The Technology Strategies for Inventory Management Benchmark Report, and reported on Industryanalystsreporter.com, finds that companies adopting new inventory management technology are better able to manage supply chain complexity and can reduce inventories by 20 to 30 percent while simultaneously increasing customer service levels.
The study also outlines that
Small mortgage companies need to conserve cash flow with cost effective marketing, but how do you get the most bang for your buck? The trick is to know your marketing possibilities and to know them well.Buying internet leads has become a common practice. Websites like GetSmart.com which is owned and operated by LendingTree offer lenders who purchase mortgage leads the opportunity to expand business through the internet. These high traffic websites have easy to fill out forms that entice consumers to get more information about mortgage products. Their refinance leads and second mortgage leads go to you and four other lenders. When you purchase leads that are exclusive like
Better Inventory Management Required
So, how does a company that is sourcing overseas take the increased variability into account, including lead-times, higher volumes and stocking strategies, while improving their performance? Many times these issues are addressed with higher inventory levels. But is that the answer?
An AberdeenGroup benchmark study released in 2006, entitled The Technology Strategies for Inventory Management Benchmark Report, and reported on Industryanalystsreporter.com, finds that companies adopting new inventory management technology are better able to manage supply chain complexity and can reduce inventories by 20 to 30 percent while simultaneously increasing customer service levels.
The study also outlines that nearly 70% of the survey respondents say they have made or been asked to provide recommendations in the past six months to management on how to improve their inventory management technology. And fully 83% of companies say they have made or been asked to make process recommendations for inventory reduction strategy within the past six months.
Thomas Uhrig, president of TCLogic, an inventory optimization software provider based in Indianapolis, sees the need for companies to improve their inventory management. “As companies deal with increased volumes of overseas products, they must do a better job of managing the rest of their inventory or potentially risk running out of warehouse space or, even worse, draining their lines of credit,” said Uhrig.
For planners this may involve purchasing other products more frequently, redistributing product amongst locations to obtain the optimal mix, realigning order points, safety stock, EOQ (Economic Order Quantity) or utilizing a postponement policy for purchasing new stock.
“Inventory optimization can be a very effective solution to come up with the right mix,” added Uhrig. “Companies utilizing inventory optimization software solutions are far more capable of maintaining higher service levels for their customers, but doing so without overstocking their locations. And they are much more able to work through the longer and varied lead times and increased volume that comes with sourcing overseas. The results they can see are better business results, especially in markets where their peers are struggling to compete.”
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.hubyou.info/article/32379/hubyou-Riding-The-Waves-Of-Overseas-Sourcing.html">Riding The Waves Of Overseas Sourcing</a>
BB link (for phorums):
[url=http://www.hubyou.info/article/32379/hubyou-Riding-The-Waves-Of-Overseas-Sourcing.html]Riding The Waves Of Overseas Sourcing[/url]
Related Articles:
CMS and JCAHO Healthcare Security Requirements Summary
Working With Recruiters - Fair & Honest Approach
Bookmark it:
|