Supply Chain Disruptions Reach the CEOs – Again

The historically unique peace in global shipping that the USA maintained since WW II is giving way to an uncertain era in which companies themselves have to organize solutions for their supply chain and transport security. Houthi rebels from Yemen have attacked commercial vessels in the Red Sea since late November. CEOs expect these disruptions to last for a while. However, the situation is…

0 Comments

Strategies to Mitigate Risks from Supply Chain Disruptions

What to do when faced with delays and problems in the supply chain? The high volatility in purchase delivery forces decision-makers to adapt their supply chain strategies. Managers have fundamentally four options to respond. These four critical approaches are: 1) Increase inventory from just-in-time to just-in-case2) Find a second (or third) source of supply3) Reshore production to the US or to regional suppliers4) Leverage…

0 Comments

Competive Advantage by Supplier

What is the role of SCM and Purchasing for innovation and competitive advantage? Today, many firms relegate SCM (incl. Purchasing) to a tactical level operating in a "silo." Because their mission is limited to one thing: efficiency in the way of low piece prices and operational cost. The result: The "pricing game!" Suppliers start high, buyers negotiate down, everyone gets a bonus, the price…

0 Comments