Tag: sourcing

Avoid shipment delays!

highlite_s_drop_shipment_service_mediumDelays in shipment are not uncommon, but preventable nonetheless.

There are several possible causes for shipment delays, including:

  • Delays in shipment of raw materials or components to the assembly factory
  • Factory equipment malfunction
  • Human resource issues
  • Logistics (freight forwarder) delays
  • Incorrect order quantity loaded (partial shipment)
  • Product gets held in Customs

So, how do you avoid delays in shipments?

Pre-Production:

Preventative action is the most effective way to avoid delays in shipments and reduce overall quality risks and cost.  Supplier evaluations incorporate key indicators that ensure production is timely. For example, ISO 9001 based audits focus on the following:

Closing out World Trade Month

“World Trade Month in May stems from World Trade Week, which was established as a way to promote local businesses. It has since grown into a month-long initiative to highlight US trade relationships and local and national trade events. As the WTCDC, part of the mission is to facilitate and enhance the exchange of goods and services in the international marketplace. Through events, the building fosters international dialogue and raises public awareness of the economic benefits that can be realized through trade.” 

The WTO issued a press release in April regarding world trade expectations in 2014.  The gist:

World trade is expected to grow by a modest 4.7% in 2014 and at a slightly faster rate of 5.3% in 2015. 

Other interesting insights include:

  • The WTO’s forecast of 4.7% growth in world merchandise trade for 2014 is below the average rate of 5.3% for the last 20 years (1993–2013) and also below the pre-crisis average rate of 6.0% for 1990–2008. The average rate of trade expansion in the three years since 2010 is 3.42%. Forecasts for 2014 and 2015, if correct, would raise the average to 4%, but this rate is insufficient to narrow the existing gap.
  • World merchandise trade is expected to post a 4.7% increase in 2014, with developed economies growing 3.6% and developing economies and the CIS advancing 6.4%. We expect that exports from Asia will grow faster than those from any other region (6.9%). Asia should be followed by North America (4.6%), South and Central America (4.4%), Europe (3.3%), and Other regions (3.1%), an aggregate that includes Africa, CIS and Middle East.

Two interesting graphical data representations include:

A new Prime Minister for India… Sourcing & manufacturing opportunities expected from positive economic impact

A gentleman from India recently raised a discussion during a class that concerned the newly elected Prime Minister Modi. For many unaware, the recent election in India was considered a “a landslide victory for opposition leader Narendra Modi.” This particular student was drawing the connection regarding the expected economic impact on the region.

The media isn’t short on coverage for this international event, but Forbes did indicate two interesting reasons why something like this would move the Sensex index up 4.5%, which was the highest in five years.  It’s expected to continue to increase, and here’s why:

1) Modi’s platform focused on pro-business economic development.

2) “It would appear that the National Democratic Alliance, a group that is led by Modi’s Bharatiya Janata party, is going to take over 300 seats, which would mean a government that would not have to solicit coalition partners and the compromises that would necessarily go with doing so. India has often been impeded by policy paralysis caused by unstable coalitions and this would help the new government to act more decisively – although the long-standing issue of deadlock between federal, state and local governments isn’t going away (nor should it, really, in India’s sophisticated democracy).” ~Forbes

The Wall Street Journal connected the election to the international economy as well, indicating

Negotiating in the global marketplace

An article recently posted to Inc. discusses charts by Richard Lewis that “reveal how to negotiate with people from around the world.” As a third-party quality provider, this is a key value for us because we absolutely agree that cultural considerations are key in negotiation and general business activities and it can be a significant barrier in sourcing activities in particular. Having local knowledge and cultural expertise is a competitive edge for us, no doubt.

Lewis’ book, When Cultures Collide, further discusses the topic, and we’ll be checking it out.  The Inc. article quoted and paraphrased the following from this source:

  • Canadians, compared to Americans, tend to be more low-key and inclined to seek harmony, though they are similarly direct.
  • English tend to avoid confrontation in an understated, mannered, and humorous style that can be powerful or inefficient.
  • Germans rely on logic but “tend to amass more evidence and labor their points more than either the British or the French.”

Global Manufacturing: Current Reality & Emerging Trends

Companies sourcing from China and greater Asia have enjoyed relatively stable conditions for nearly 20 years. Unfortunately, conditions affecting raw materials, labor, logistics, quality, regulations and currency translations are now changing rapidly and inducing disruptions in supply chain structures across the region while also creating new opportunities in other countries.

In Michael L. Hetzel’s most recent seminar, we review the current reality of manufacturing in China, Greater Asia, The Americas and Europe along with the present and expected trends emerging throughout the world. Michael, Pro QC’s VP/Americas, provides information that will enable you to enhance your understanding of the present conditions and emerging trends in order to create and maintain effective manufacturing strategies, minimize total costs and anticipate potential supply chain disruptions that can lead to delivery delays, increased warranty costs and product recalls.

GlobalBusinessProfessor.com has posted this content to their website with unlimited access.  View the complete seminar here.