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Toyota

 

 

 

 

Toyota Motor will have in place by autumn a more resilient supply chain that would recover within two weeks of another massive earthquake hitting Japan, a top executive said on Friday.

Sunday, 04 March 2012 20:26
Published in Corporate
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Foxconn

What do Apple, HP and Dell have in common – apart from making computers? They all source electronics from Foxconn,  the beleaguered Chinese company under fire for working conditions at its factories. There is a clear lesson to be drawn from the ongoing Foxconn furor. Fortune 500 companies’ supply chains are increasingly under the microscope— by consumers, investors, and the media.

Wednesday, 29 February 2012 13:03
Published in Corporate
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The third in our SupplyChainBrain video interview series is Jabil. These videos are jam packed with great content and I suggest you check them out (free registration to view, but well worth it!)

The cost of managing risk can';t be allowed to outweigh the value of the supply chain, says Joe McBeth, vice president, supply chain, at Jabil. But there are unknowns that have to be planned for.

As one of the largest manufacturing service providers in the world, Jabil is involved in everything from full product design, logistics, assembly and supply chain services for some of the biggest businesses around. That guarantees complexity to contend with.

"The challenges are consistent with some of the things we';ve seen in past, but they are more dramatic than they were" says McBeth. "The complexity of globalization, the number of nodes, the number of suppliers, the number of customers in the industries we serve, they all add a large amount of complexity to the equation."

Added to that are the unknowns like the tsunami and earthquake combo that disrupted so many supply chains last year in Japan.

With a title like vice president of supply chain, McBeth is understandably a bit biased in assessing the importance of supply chain management. It';s simply the "the most important competitive advantage" that Jabil has in its space, in his view. He acknowledges that that arena is filled with good players. Everyone is working from small margins, and it';s difficult to stand out or to be unique. McBeth feels that Jabil is just that because quite aside from its product offering, its supply chain excellence "does create some separation" from the competition.

To have that kind of world-class supply chain, it';s imperative to have a data system and tool set that allow one to manage the complexity that happens daily. "The guy with the best information is always going to win," McBeth says.

That';s no mere academic concern for Jabil. The manufacturer has 12,000 active suppliers and more than 250 major accounts. One needs a dependable data tool to plan and understand risk in order to keep ahead of the curve in that complex environment, he says. Sometimes you develop your own supply chain, sometimes you inherit one. Nevertheless, in all cases one needs to comprehend the risks around the master schedule and how to commit to customers'; demand signals. That necessity drove Jabil to invest in the RapidResponse solution from Kinaxis, McBeth says.

"We needed a tool set that was fast, that was easy to use and could do multiple scenarios so that we come out with better answers."

As the company expands around the world, the supply chain needs to be continually reconfigured to support the additional manufacturing sites. "Having a control tower that feeds the best information, that does the modeling – that will allow us to be ahead of the game, to lower our risk, lower our costs and produce greater value for the end customer," McBeth says.

It';s important to have tool that indicates course corrections that must be made. But McBeth says he envisions a tool one day that won';t just respond to changes but will anticipate them and take proactive measures.

To view video in its entirety, click here

Friday, 24 February 2012 06:00
Published in Corporate
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The changes Apple Inc. (Nasdaq: AAPL) is making to its supply chain management practices will cost millions and may even run into billions as Chinese wages skyrocket, but who will foot the final bill? Will Apple successfully pass the extra costs of the initiatives it has introduced recently to its contract manufacturers and suppliers; will the company itself absorb the cost, or will it successfully pass these onto customers?

Thursday, 23 February 2012 11:59
Published in Corporate
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Dunkin' Donuts, the international doughnut and coffee franchise company has announced that it has combined four separate regional purchasing organizations into a single nationwide US procurement entity.

Thursday, 23 February 2012 10:17
Published in Corporate
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Apple has told prominent environmental activists in the U.S. and China that it will soon allow independent environmental reviews of at least two suppliers' factories in China, the activists said. Environmental examinations would be separate from an independent probe of working conditionsat the Chinese factories of Apple suppliers, including Foxconn Technology, that began last week.
Wednesday, 22 February 2012 16:51
Published in Corporate
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