Executive Briefings

The Longer the Supply Chain, the Greater the Risk

A few years ago, a client called asking for help setting up a supply chain organization. It turns out the company had moved almost $25 million of purchases to Southeast Asia in an effort to reduce product costs quickly and were experiencing problems. They hoped a formal organization and business processes could set them right again. If this strikes you as backward, it should.
Citing cost pressures, companies are increasingly looking to places such as Eastern Europe and Southeast Asia to reduce expenses. And though lower costs are often available, companies that rush to place purchase orders with overseas vendors often expose themselves to higher expenses and additional headaches by not doing their homework in advance.
Source: BPM Today, http://www.bpm-today.com

A few years ago, a client called asking for help setting up a supply chain organization. It turns out the company had moved almost $25 million of purchases to Southeast Asia in an effort to reduce product costs quickly and were experiencing problems. They hoped a formal organization and business processes could set them right again. If this strikes you as backward, it should.
Citing cost pressures, companies are increasingly looking to places such as Eastern Europe and Southeast Asia to reduce expenses. And though lower costs are often available, companies that rush to place purchase orders with overseas vendors often expose themselves to higher expenses and additional headaches by not doing their homework in advance.
Source: BPM Today, http://www.bpm-today.com