Analyst Insight: Omnichannel customer expectations continue to drive complexity in inventory planning and management. Expectations for faster fulfillment and free shipping, coupled with pressure to minimize inventory carrying cost, are driving companies to rethink inventory strategies to profitably service customers and ensure inventory is deployed in the right quantities to the right place at exactly the right time. But omnichannel flows like ship-from-store and buy-online-pick-up in-store (BOPIS) are complicating things and creating a new threshold for inventory planning requirements. - George Swartz, vice president, Fortna Inc.
Analyst Insight: Outsourcing continues to grow, yet the news is full of outsourcing agreements that didn't work as planned. Far too often firms rely solely on power to get what they want. This leads to confusion, resentment, lost productivity, and at times, missed market opportunities. Suppliers and buyers need to better understand the use of power, and how this relationship will impact performance. - Karl Manrodt, professor of logistics and supply chain management, Georgia College and State University
Analyst Insight: The key to supply-chain risk management is a predictive model that uses enhanced analytics to identify potential risk. This model would allow companies to move beyond historical metrics so they can determine risk for every part and supplier. It also would identify the appropriate response, promoting consistency within the organization. - Sven Dharmani, performance improvement principal and global automotive sector supply chain leader, Ernst & Young LLP
A U.S. tax overhaul proposed by Republican leaders in Congress would deepen divisions between big manufacturers like Boeing Co and the thousands of smaller companies that supply them, according to suppliers and tax and trade experts.
Vickers Engineering Inc. embodies the potential of American manufacturing. The New Troy, Mich., machining company supplies precision parts to clients including Toyota Motor Corp. and Volkswagen AG , and exports to Mexico and Canada. Its staff has risen fivefold and average pay has doubled over the past decade, says Chief Executive Matt Tyler.
Analyst Insight: Relatively flat growth over the past several years coupled with margin erosion and heavy M&A activity in the industry has companies looking to the their supply chains for greater efficiencies. Long-tail SKUs and accelerated obsolescence cycles are clogging storage capacity that is needed for expansion of new lines, categories and products to deliver "one-stop shopping" for customers and competitive advantage for distributors. The next competitive edge will come, not from step change, but from transformational projects that deliver unprecedented efficiency and agility. - Chris Mehl, electronics industry leader, Fortna Inc.
Analyst Insight: The 2016 DC Measures Study from the Warehousing Education and Research Council shows over 35 percent of respondents report to the C-suite, where interest in logistics performance will only increase. To better communicate to the C-suite, logistics needs to focus on managing and monitoring their performance by concentrating on the three pillars of performance management. In order to be successful, we must think beyond simple short-term results and move towards a better model for managing performance. - Joe Tillman, principal research lead for supply chain, APQC
After more than two decades of bad blood and legal wrangling between states and the online giant, Amazon will collect sales tax in all states that have such a levy. Collection in Hawaii, Idaho, Maine, and New Mexico, the final four states where shoppers don't pay required tax through the site, will begin on April 1st.
Analyst Insight: Internet of Things (IoT) and smart product resellers connect industry networks to the customer. They offer service in addition to supply, and are familiar with product demonstrations, try-before-you-buy deals, how to handle product version changeovers, and many more practicalities of doing business. By 2020, these resellers will need new tools to simplify the buying process because they will be selling to the majority, not just to early adopters. - Peter Thorne, director, Cambashi Ltd.
Construction and design professionals will likely have an easier time finding and using sustainable building materials thanks to efforts from two flooring manufacturers: a new product catalog by Tarkett and new product-specific environmental product declarations (EPDs) from Gerflor USA.