To meet today's complex fulfillment requirements, many e-commerce businesses are turning to direct-ship strategies — whereby vendors maintain control of inventory and order fulfillment.
The volatility of the U.S. – China Trade war has caused considerable uncertainty for companies with global manufacturing networks. Increasing tariffs, regulations and other barriers are forcing companies to adapt to prepare for commercial risks amid escalating trade tensions.
Tech manufacturers have led a shift in the relationship between business and society. It has been a driver of progress while raising questions about some outcomes. High tech businesses can plan for the future by deploying intelligent ERP that builds trust and accelerates business and societal growth.
Challenge: A fragrance and flavor company wanted to create a foreign trade zone (FTZ) in which it could perform both manufacturing and distribution functions. Due to its many product formulations — and ingredients coming from the U.S. and around the world — tracking inventory was complex. Some incoming ingredients also skipped manufacturing and were sold raw.
Challenge: Since February 2018, the cost of duties for U.S.-China operations has substantially grown. There are now $550 billion in tariffs applied exclusively to Chinese imports, while China has imposed $185 billion on U.S. goods.
The hidden risk of a protracted trade war goes beyond the most obvious downside of losing valued trading partners, disrupting the supply chain and increasing costs.