2. Rethinking Your Supply Chain StrategyBy Sean Silverthorne | June 8, 2011 In Japan, the production of everything from fuel cells to TV displays to cars has been disrupted. Willy Shih sees two trends that place the world’s supply system at increasing risk. In order to save costs, suppliers are putting all their faith in a smaller number of suppliers. Subcontracting increasing the vulnerability if one of subs downstream is disrupted.
3. Cont’d Every firms need to rethink their supply strategy. What happens if UPS workers go on strike–do you have a Plan B? What suppliers can I least afford to have offline for any period of time? Can I absorb the increased costs — prices go up when supply drops. If so, for how long? Or can I pass those costs along to customers? Is business insurance an effective way for me to manage risk?
4. 5 Ways China Can Benefit From Japan’s Auto Supply Chain Crisis.By Matthew DeBord | April 6, 2011 Upgrade the business model -An investment now in R&D will enable China to build its own high-value supply chain. Develop logistics expertise Expand the indigenous/existing parts industry -China’s economy can support a certain amount of excess capacity, so the country can function as a global auto-parts safety valve.
5. Cont’d Conceive a strategy for transplanting its carmakers -time for the Chinese to begin thinking about moving away from a pure export model and consider locating capacity in export markets. Create a specialized supply chain for electric vehicles. -China could fill the role for high-end electric car parts.
6. 5 Things the Auto Industry Can Learn From the Supply-Chain CrisisBy Matthew DeBord | March 30, 2011 Move from lean manufacturing to flexible manufacturing Preposition “crisis” inventory -in this area the auto industry can supplies near possible combat zones around the world to avoid the logistical hurdle of moving everything to the battle all at once.
7. Cont’d Pursue standardization of supply -At a fundamental level, all cars are basically the same. -higher levels of standardization are possible, Enable local fabrication -Works better with cheap, simple vehicles. Make the industry more sustainable -Eliminate excess capacity and try to make higher profits off the capacity that remains.
8. Consumer goods co’s hire consultancies to improve supply chain Makers of consumer goods and personal care products are turning to consultancies to help reduce sales losses and cope with high growth. LT sales were falling by 15% because of availability issues. No tools were available for sales forecast or manufacturing. There was no system to integrate raw materials and production check. This resulted in high inventory and high loss of sales,” MD Arorasaid.
9. Cont’d By E&Y consultancy firm approach LT reduced loss of sales 5 to 15% in domestic and 2 to 5 % in export market. The new logistics network reduced the time finished goods took to be sold from 38 days to 26. E&Y also provided an integrated sales forecast system on monthly base prediction to LT Foods. supply chain management put a company in an integrated planning process with clear accountability.
