Procure IQ

Today’s guest post is from Matt Gersper, founder and president of Global Data Mining, who will be hosting a webinar on Trade Optimization on Thursday, July 15, 2010 from 2:00 pm to 3:00 pm, EDT. New government regulations and ineffective supply chains are costing U.S. businesses millions of dollars in unnecessary fees and expenses, destroying company profits and eroding global competitiveness. Understanding risk factors associated with international business transactions can help companies estimate the financial impact these risks may have on their business and provide a framework for fixing the problems and restoring lost profits. …

Read the rest » Sourcing Innovation

After reading a recent article in the new SCMR that contained a 3PL update which noted that analysts suggest global/domestic lines may be blurring, all I can do is ask why would a multinational use a domestic 3PL in 2010? A modern multinational is in-sourcing, out-sourcing, near-sourcing, far-sourcing, high-value sourcing, and low-cost-country sourcing … and moving products back and forth all over the globe. What possible logic would there be for using a domestic 3PL? If you’re outsourcing your logistics to a 3PL, then you’re outsourcing to use the full capabilities of the 3PL, not just to …

Read the rest » Sourcing Innovation

… but there’s also risk as well. In fact, I’d say the risk is as big as the opportunity presented in this Global Services article on the globalization of R&D and Product Development which claims that there is a tremendous opportunity for growth based on the fact that only 5% of current R&D spend is based on outsourced partnerships. While it is true that the average small to mid-sized software product company will continue to be faced with cost pressures and increased revenue expectations, that headcount in other economies like China, India, Poland, and Russia are …

Read the rest » Sourcing Innovation

Now it’s well known that, unlike a fellow blogger, I’m not all that high on China (having questioned how innovative LCCS sourcing to China really is back in month one) because I believe that we could be a lot more sustainable, green, and logical and near-source much of what we’re needlessly outsourcing halfway around the globe, but sometimes I think AMR is even lower on China than I am, to the point of being unjustly hard. (Because, as Dick Locke will point out, sometimes they are the best choice. Not always, but sometimes.) Basically, I found this …

Read the rest » Sourcing Innovation

A recent article in World Trade Magazine on delivering supply chain excellence listed seven services beyond simple logistics that your 3PL might be able to do for you. They’re worth looking into, especially if you don’t have the resources or expertise to efficiently manage certain aspects of your supply chain in house. Network Optimization If your 3PL is efficient, it has optimized its own network. If it’s forward thinking, it will maintain an industry leading supply chain network optimization solution in-house that it can …

Read the rest » Sourcing Innovation

The last time we reviewed Integration Point, one of the twenty-one stops on the 2008 Sourcing Maniacs Vendor Tour, we discussed their global trade solutions and told you they provided another way to get your trade data in order. In that post, we told you about their extensible modularized web-based platform that has effectively solved the core customs, security, and classification challenge as well as the free trade / secure trade zone challenge with solutions that address import and export classification (HTS codes), import documentation requirements, export documentation requirements, C-TPAT, AEO, denied party screening, FTA qualification, duty deferral, customs warehousing, …

Read the rest » Sourcing Innovation

Editor’s Note: Today’s post is from Dick Locke, Sourcing Innovation’s resident expert on International Sourcing and Procurement. (His previous guest posts are still archived.) Here’s a headline supply managers don’t want to see about their own company: Alcatel Blames Parts Shortage for Steep Loss …

Read the rest » Sourcing Innovation

Recently, state-controlled Sinopec spent $4.65 billion (US) to become the first Chinese multinational to buy a direct stake in a major producing oil-sands project in Alberta (Canada) and buy out ConocoPhillips’ 9% stake in Syncrude Canada Ltd (which is the trophy of Canada’s oil sands projects, producing 350K barrels a day). According to the Globe and Mail, the deal represents the next stage in Chinese investment in the oil sands, as Beijing-controlled companies scour the globe for energy resources and look to diversify the country’s growing imports away from the Middle East. Sinopec is a subsidiary of China …

Read the rest » Sourcing Innovation

Today’s post is from David Henshall, Founder of Purchasing Practice. Dave can be reached at dhenshall <at> purchasingpractice <dot> com. In this four part series, we examine eight dimensional capabilities that will help you overcome the myths surrounding global sourcing. In today’s post, we will focus on the final dimensions of politics, local context, and enabling infrastructure. (Yesterday’s post addressed risk and opportunity.) Dimension #6: Politics Politics matters in LCCS. As stated in my introduction to the series (Part I), much of the political noise from politicians, humanitarians and environmentalist can be misleading, resulting in …

Read the rest » Sourcing Innovation

Today’s post is from David Henshall, Founder of Purchasing Practice. Dave can be reached at dhenshall <at> purchasingpractice <dot> com. In this four part series, we examine eight dimensional capabilities that will help you overcome the myths surrounding global sourcing. In today’s post, we will focus on the dimensions of risk and opportunity. (Yesterday’s post addressed corporate social responsibility.) The decision to pursue a global sourcing strategy will ultimately depend upon the amount of value that it creates. Value in this context, however, should include not only the available savings opportunities, but also the inherent risk …

Read the rest » Sourcing Innovation