2010 Supply Chain Trends

We’re over a quarter of the way through 2010 and this year is shaping up to be another remarkable year in supply chain. Below are some of the biggest trends we’re seeing in the industry and reflected through client operations.

1. Transparent Supply Chain Technology Platform
2. Green is Real and Here to Stay
3. Globalization, Low Cost Country Outsourcing, Domestic Outsourcing… Focused on Cost Reduction
4. Global Talent
5. The Generation Gap
6. Strong Survive & Weak Die
   

I’d enjoy hearing from you, especially if you strongly agree or disagree with any of these points. And if you’re planning to attend NA 2010, please let me know. I’d welcome the chance to grab a cup of coffee at the show, or a cocktail with you at our sponsored cocktail reception.

Best regards,

Jim Barnes
jbarnes@envistacorp.com

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“Do you measure your suppliers?” If your answer is “no”, quickly implement a program and save your company some money. One of the most important aspects in dealing with suppliers is their capability to react quickly to quality issues. However, if you do not measure them on a disciplined and timely basis, your chances of making suppliers accountable for their performance are very low.

Many analysts, consultants, and software vendors have coined terms for the overall supplier management process. Some of the most common include Supplier Relationship Management (SRM), Supplier Performance Management (SPM), and Vendor Performance Management (VPM). These all have different yet similar meanings, varying from all-inclusive, collaborative and integrated supplier relationships, to simply measuring what the supplier has delivered. According to ARC Advisory Group’s Director of Supply Chain Management Research Steve Banker,“Performance Management boils down to measuring whether suppliers do what they have agreed to do. The metrics should be timely, inexpensive, and credible.”

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So, you’ve just finished your major Labor Management System (LMS) implementation. Your facility. is now up and running with engineered labor standards for a majority of your distribution tasks, including the new value added services (VAS) tasks your facility is providing to your customers. Ultimately, the goal is for continuous improvement between your company and your suppliers.

While you can and should enjoy a sense of accomplishment, now comes the real work of ensuring your investment pays for itself in a timely manner and the LMS program becomes engrained in your company’s culture. After the formal engineering work is completed, there are three main tasks that should become a part of the guiding principles of your new LMS program. They are:

• Employee Observations & Training
  
• Standardized Reporting
  
• Labor Standards Audits

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enVista has launched a new, quarterly transportation e-newsletter, enForm, to help companies make sense of and benefit from news and updates in the transportation industry. In addition to offering expert perspective around transportation information and events impacting business organizations, enForm offers educational resources to help companies improve their transportation processes.

enVista’s transportation practice is confident that your team will benefit from the salient whitepapers and other educational resources enForm offers. We hope you will find enForm a valuable resource and we look forward to your feedback.

Click here to subscribe to the enForm Newsletter Online.

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Is your organization promoting environmental initiatives for increased operational efficiency, bottom-line cost savings, and socially responsible business practices? 

If so, with the Environmental Sustainability Dashboard for Microsoft Dynamics® AX 2009, you can gain a new perspective on your business by tracking your energy consumption and carbon footprint to help identify risks and opportunities.

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Part 1: Project Management
Through the fictitious eyes of reluctant Paul Malarkey, this informative and engaging supply chain series will take a look at each step of a successful methodology model. The whitepapers will show, through real-life business examples and explanations, the importance and value of using a project methodology. See how Paul and his company profit from the many benefits of using a true project methodology model.

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1. Transportation has been and remains a leading economic indicator.
   
   
2. Transportation rates fluctuate with demand, so with demand low, don’t expect to see rates rise much.
   
   
3. Carrier comments about having reduced capacity so that when the economy picks up, rates will supposedly shoot up really quickly seems to me to be whistling past the graveyard or just a negotiating tactic to try to get better rates now.
   
   
4. There will be another fuel price shock.
   
   
5. Transportation Management Systems sales will continue to trend away from “behind the firewall” offerings to Software-as-a-Service or On-Demand offerings.
   
   
6. Freight Management outsourcing will continue to grow (in some form or fashion).
   
   
7. Next year there will be another round of trend articles…

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