Know the Total Cost of Ownership for items. Are you thinking about outsourcing the manufacture and delivery of a product, or renewing a current outsourcing contract? For manufacturing items, you may think of China or other countries in north or south east Asia. Why? because production costs are considered to be lower. Labour costs are still a dominant feature when … Read More
Government policy can affect your supply chains
When governments want to make money. Your business has shipped through a port for many years. Suppose the port is owned by the government and they have decided to substantially increase the rent paid by stevedores. The reason is to make the port attractive for sale to private operators. Of course, to cover the rent increase, stevedores will increase their rates … Read More
Buying from low cost countries has supply chain risks
Another case of problems with international suppliers. Companies that buy items internationally, which become products sold through retail stores have many risks. A big risk is that the media, including social media, will uncover any misdeeds and ‘cutting corners’ by your business and your international suppliers. And you will get all the publicity you do not need! Examples of problems … Read More
Bad products are not worth supply chain & logistics costs
Know your imported products supply chain risks. If your business imports products, there are additional supply chain risks, depending on the country, that must be identified and managed. In Australia, frozen berries (strawberries, blueberries, raspberries etc.) are being pulled this week from home larders, school canteens and supermarket shelves. The reason is Hepatitis A, contracted when consumers eat the thawed … Read More
Good ideas to improve supply chains do not always work
A new supply chain idea of ten years ago. Demand driven supply network (DDSN) was a new concept in 2004, but no mention is made ten years later. Why is that? Surely a DDSN is what all right minded businesses should aim for. The design of DDSN was developed from the supply chain challenges of the early 2000s: distortions downstream … Read More