MHI Blog -- Seven MHI member companies were recently named as recipients of the 2014 Green Supply Chain Awards. MHI members recognized for their supply chain sustainability efforts are: Crown Equipment Corp. enVista; HighJump Software; Invata Intralogistics; W&H Systems; Westfalia Technologies; Wynright Corp., a Daifuku Webb Company.

The 2014 Green Supply Chain Awards recognize companies making sustainability a core part of their supply chain strategy, and who are working to achieve measurable sustainability goals within their own operations and/or supply chains, in the areas of Sourcing/Procurement, Fulfillment/Logistics, Operations, Product Lifecycle Management, and other areas of the supply chain.

USA TODAY -- The nation's transportation system is threatened by short-term federal funding measures and will be "in trouble" unless it gets more money, Transportation Secretary Anthony Foxx told USA TODAY reporters Wednesday.

Uncertainty resulting from the lack of a long-term transportation bill has cost jobs and has left state and local transportation officials unsure how to finance projects that will take years to complete, he said.

EBN -- Simply stated, supplier relationship management (SRM) is a comprehensive approach to managing your organization's interactions with its vendors. Historically, SRM's main goals have been to streamline the B2B technology and processes used for procure-to-pay transactions in order to maximize quality and profit while lowering production and distribution costs.

 

Though these aspects of SRM are critical for success, the "relationship" part of SRM has often been at best managerial and at worst mutually adversarial. Often, it would be more accurate to describe the process as "supplier management." This approach worked well enough in the past for many organizations, but not without its costs in the form of excessive inventory, short-term vendor relationships, negative brand reputation with suppliers, and an inability to take advantage of discounts, to name a few.

Japan Today -- Japan has slipped back into a recession for the second time in two years. That could mean more trouble for a range of U.S companies and industries that count on the country for sales.

Best known as an exporter of cars, gadgets and comic books, Japan is also a key consumer of U.S. goods and services from name-brand companies. Japanese customers take a shine to diamonds from Tiffany, strap on handbags from Coach, and ride choppers from Harley-Davidson. 

Supply & Demand Chain Executive -- The supply chain industry has become increasingly proficient at facilitating the movement of commercial products, and no one questions the role the Internet plays in this evolution. Last week, President Obama invigorated the debate on how the Internet should be regulated when he called for clear network neutrality protections. He specifically called for reclassifying Internet broadband as a telecommunications service under Title II of the Telecommunications Act.

World Trade -- According to Michael Montgomery, US Economist for IHS Global Insight, industrial output sagged 0.1 percent lower in October as utilities and mining eased. Utility output was off by 0.7 percent, but will surge in November as a result of the current cold snap.

 

Manufacturing output rose 0.2 percent both in total and excluding motor vehicles and high technology. Machinery output surged, as did chemicals and plastics, Montgomery added.

Material Handling & Logistics -- Over the past few years, resources in traditional offshore locations like India, China and Eastern Europe have increased in cost, and the argument of price has nearly been wiped off the table when comparing total cost of ownership. The more obvious advantages of outsourcing a team to Central and South American have been discussed in depth, including shared time-zones, communication and cultural fit. But after over a decade of managing successful development projects with displaced teams, we have uncovered many less tangible but critical advantages of nearshore outsourcing versus traditional offshoring.

MHI Blog -- GE recently announced that it will build a new manufacturing facility to drive innovation and implementation of advanced manufacturing technologies across GE industrial businesses.

The new facility, located in Findlay Township, PA) represents a $32M investment over three years by the company and will result in the creation of 50 high-tech engineering jobs initially, in disciplines ranging from mechanical and electrical to systems and software engineering.

Industry Week -- It is clear that many organizations are becoming true partners with their customers in order to maximize the value for both stakeholders. Organizations’ definition of quality, the actual quality processes, and using quality measures to drive performance and culture are all closely tied to customers. Because quality and customers are so closely aligned in successful organizations, the two concepts are intersecting into a customer-centric quality culture.

While manufacturing organizations tend to use mature quality practices—in regards to governance models, availability and use of metrics, quality management frameworks and certifications, and training—do their practices include a focus on the customer? What defines a customer-centric, quality culture and what are the driving factors of its success?

SupplyChainBrain -- The Amazon effect is raising consumer expectations for delivery services - expectations that logistics providers are struggling to meet without degrading margins, says Robert Lieb, supply chain management professor at Northeastern University. Lieb discusses this and other trends revealed in the annual survey of global 3PL CEOs.

Amazon has really ratcheted up consumer expectations in terms of service, but it is doing so without charging customers the true costs of that service, says Lieb. "Clearly, Amazon is not covering its transportation costs," he says. "The shortfall is dramatic, but Amazon appears willing to pay the costs at this point in order to increase market share."

EBN -- The financial aspect of the supply chain is an often-neglected topic when discussing supply chain management. It is left only to the financial department, and everyone else forgets that the whole organization depends on it.

The physical and financial aspects of the supply chain must be integrated to provide a really smooth supply chain management to manufacturers. Managing cash and capital is as important in the equation as managing partner relationships. Thinking of return on investment is important, but so is being careful not to become a cheap (read: low-quality) supply chain. Quality and efficiency must never be compromised.

Modern Materials Handling -- Following a historic second quarter, merger and acquisition (M&A) activity in the industrial manufacturing sector maintained a strong momentum in the third quarter of 2014.

These are among the results of Assembling Value, a quarterly analysis of global deal activity in the industrial manufacturing industry by PwC US. With $102.7 billion in deal proceeds recorded so far this year, the first nine months of 2014 have already exceeded all annual totals of the last 10 years.

Business Reporter -- Supply chain management is becoming increasingly important as every business becomes an e-commerce enterprise. This kind of logistics covers purchasing, packaging, shipping, warehousing and customer delivery.

"Careful supply chain management has been instrumental in conception and growth of our business," says Julien Callende, co-founder and chief operating officer of furniture supplier Made.com. "The bigger you grow the more complex the supply chain becomes. And the bigger you become, the bigger the impact on customers the smallest mistake becomes."

Industry Week -- Logistics and transportation services companies are seeing a major shift in the on-the-job responsibilities of their CFOs, according to in-depth interviews conducted by consulting firm Korn Ferry. This change is attributed to the growing complexity in the sector, technological innovation, the availability of data and an increasing regulatory environment. In this new business climate, CFOs no longer just report number outcomes; they advise and partner with business line leaders and provide a strategic perspective on business decisions.