• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Stay on Your Toes When Sourcing from Low-Cost Countries

Stay on Your Toes When Sourcing from Low-Cost Countries

March 5, 2008
Managing Automation

If you're like most manufacturers, you've spent the past few years consolidating suppliers, reducing the inventory you carry, and sourcing goods from low-labor-cost countries. These tactics have meant survival in many vertical sectors where manufacturers must drastically cut costs to remain competitive.
But global sourcing has caused troubles, especially in the consumer-packaged goods industry, where quality problems and corporate social responsibility issues threaten to destroy overnight brands built up over decades. The problem for most manufacturers is that they can't pull back their purchasing from overseas to reduce risk. With threats looming large over today's increasingly fragmented supply chains, manufacturers must turn to processes, organizational behavior, and technology tools to help mitigate risk.
"The dilemma is all of those things manufacturers pursued to reduce cost are largely irreversible," says Jim Lawton, vice president and general manager of Dun & Bradstreet's Supply Management Solutions division. "You can't bring all of your spend back to the U.S., and you can't stock up on inventory. Manufacturers don't have the resources to deal with the new risks created by overseas sourcing. They need help identifying the right suppliers and discovering as early as possible where the problems will be."
There are several strategies for reducing purchasing and sourcing risk. The safest approach is a combination of software tools and business processes aimed at continuously monitoring the supply base, along with an overall strategy to reduce risk.
Source: Managing Automation, http://www.managingautomation.com

    RELATED CONTENT

    RELATED VIDEOS

    Sourcing/Procurement/SRM Technology Global Supply Chain Management Supply Chain Security & Risk Mgmt High-Tech/Electronics
    KEYWORDS Global Supply Chain Management High-Tech/Electronics SC Security & Risk Mgmt Sourcing/Procurement/SCM Technology
    Managing Automation

    Good Quality Management Is a Matter of Good Supply Chain Management

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Popular Stories

    • AN ARRAY OF MEDICAL DEVICES LAID OUT ON A GREEN BACKGROUND

      Why the Medical-Device Industry Is Embracing Contract Manufacturing

      Sourcing/Procurement/SRM
    • A TOY TRUCK CARRIES A GIANT BOX WITH A RED RIBBON IN A BOW

      Three Trends to Watch During Peak Season 2023

      Apparel
    • A MANUFACTURING PLANT AT DUSK OR DAWN REFLECTED IN WATER

      Uncertainty is the New Normal

      Data Management (Big Data/IoT/Blockchain)
    • On Demand Webinar_SAP.png

      Optimize your Logistics Pinch Points to Build a Risk Resilient & Sustainable Supply Chain

      Webinars
    • A GIANT CONTAINER VESSEL SPORTING THE LETTERING OF YANG MING PLIES THE SEAS

      Yang Ming Accused of Profiteering During Pandemic by Bed Bath & Beyond

      Ocean Transportation

    Digital Edition

    Scb august 2023 lg

    2023 100 Great Supply Chain Partners

    VIEW THE LATEST ISSUE

    Case Studies

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

    • Convenience Store Client Maximizes Profit and Improves Customer Service

    • A Digitally Native Footwear Brand Finds Rapid Fulfillment

    Visit Our Sponsors

    Antuit Zebra Anvyl AutoStore
    BEUMER Group Blue Ridge Global Brother
    CHEP Cleo Coenterprise
    Data Capture E2open Enveyo
    Eva Air ForwardX Robotics Frayt
    GAINSystems Generix Geodis
    GEP Global Supply Chain Marketing Summit GreyOrange
    Here Holman Logistics Infor
    Inmar Kinaxis Lexis Nexis
    Locus Robotics Logility LogistiVIEW
    Lucas Systems MCA Connect MPO
    Old Dominion OneRail Overhaul
    PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
    Saddle Creek Logistics SAP Shyft
    Sourcemap SPS Commerce Tecsys
    TGW Systems Thomson Reuters Veho
    Verusen Walmart Workshop
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Your Subscription
      • Newsletters
    • Resources
      • Events Calendar
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing