Tag Archive: international trade

Are You Reshoring?

October 5th, 2017
reshoring and manufacturing

Many U.S. companies active in China have moved some operations out of the country – 38% relocated to North America.

My APICS Inland Empire Chapter hosted a program on “Changing Trade Policies and its Effect on Reshoring” with Michele Nash-Hoff, author of “Rebuild Manufacturing – the key to American Prosperity”. And, interestingly, the Institute of Management Accountants (IMA) Orange County chose “Onshoring Profits: Manufacturing is Not Dead Yet” from a long list of topics and asked that I speak on its impact. Thus, it seems only appropriate to discuss a few common themes:

  1. U.S. firms are leaving China as conditions worsen. Actually, 25% of U.S. companies active in China have moved some operations out of the country.  38% relocated to North America.
  2. In 2014/2015, parity was reached between offshoring & returning jobs.
  3. 7 industries have reached the tipping point of returning to the U.S. and these sectors account for 70% of U.S. imports. For example, computer electronics, electrical equipment, and furniture make the list.
  4. Using purchase price or landed cost do NOT capture total cost of ownership and can lead to incorrect sourcing decisions from a financial viewpoint.
  5. 70% of executives are thinking about reshoring.

Where are you sourcing from currently? Don’t just jump on the new bandwagon of reshoring – but you should give your total cost of ownership a second look as well as dig into your customers’ expectations and sourcing impacts. You might just be surprised as to what this new view tells you!

 

Did you like this article? Continue reading: Reshoring Gains 

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World Logistics Center & the Sheer Relevance of Logistics

June 14th, 2017

There is no doubt logistics is relevant in the U.S. and the Inland Empire. During a presentation by the visionary behind the World Logistics Center in the Inland Empire, I heard several amazing statistics. One that stands out in my mind is the fact that the GDP of the 11 Western States would be the 3rd largest economy in the world behind the U.S. and China, largely due to the impact of international trade.

Going hand-in-hand with the sheer relevance of logistics is the fact that we’d be hard pressed to find any product solely made in any specific country. For example, Apple has 776 global suppliers. In partnering with several Southern California manufacturers and distributors, the picture below is not uncommon in terms of sourcing requirements to produce a product. The bottom line is that logistics can have a powerful impact on the world economy and on your customer experience and profitability.

World Logistics Center

What Should We Consider and/or What Impacts Could Arise?

Certainly, a good place to start is to not ignore logistics. It might seem like goods movement wouldn’t be that important yet it can have a profound impact, starting with the customer. Regardless of your supply chain network (whether you are a single manufacturing facility with local suppliers and local customers, a pure global network or anywhere in-between), you must think about your customers (both current and prospective). What type of service and experiences do you need to provide in order to gain customer loyalty? Once you know this answer, you can think further about your network and logistics implications.

Once you are evaluating logistics options, you’ll see the vast array of options and trade-offs. We are collaborating with a client currently to evaluate their supply chain network, and there are far more considerations than you’d think. Before jumping to a decision that you’ll be stuck with for the long-term, take stock of your current situation. Evaluate your forecast and future business. Consider innovative customer collaboration programs. There is a heightened interest in these lately! Understand your customer requirements, and align your supply chain network to these while optimizing sales growth/customer service, cash flow, and profitability.

 



APICS-IE Symposium Spotlights Global Supply Chain

October 26th, 2016
global supply chain

The October 29 Fall Executive Panel & Networking Symposium will focus on managing and navigating Global Supply Chains giving manufacturing and logistics attendees access to an expert panel with international law, global supply chain and manufacturing and international trade experience.

APICS Inland Empire Symposium Sets Stage for Global Supply Chain Strategies, Compliance, and Sourcing Decisions

The Inland Empire Chapter of APICS,  the leading association for supply chain and operations professionals, will be delivering an international-focused meeting on global supply chain trends and strategies at its Navigating Global Supply Chain Fall Executive Panel & Networking Symposium on October 29  in Corona, Calif. Expert panelists including international business attorney John Tulac; Josie Vigil, Director of Supply Chain Operations for B. Braun Medical Inc.; Pooya Kabirir, Vice President of Engineering & Operations at Combustion Associates, Inc.; Elizabeth Warren, Executive Director for FuturePorts; and Luke Haylock, Global Director of New Product Development for Alcoa. The panelists will discuss global trade, the evolving requirements and regulations and how to balance customer needs, cost, cash flow and compliance. Attendees will walk away with a better understanding of global supply chain strategic thinking, global disruptors and how to best manage these impacts in the manufacturing and distribution of products. In addition to a focused conversation on global supply chain, attendees will have time to network and benchmark with area companies and build contacts within the manufacturing and distribution community to also help them build their career.

“We’ve assembled a panel that touches on all of the strategic, compliance and operational aspects of a global supply chain, says Lisa Anderson, President of APICS-IE and LMA Consulting Group. “We are fortunate to have a community of professionals, including speakers, sponsors and members, committed to helping attendees gain value so that they walk away with strategies and new concepts to lead their companies and functions, provide valuable input on key initiatives and develop their personal careers. Gaining a competitive edge in the global supply chain requires a team approach!”

Sponsors this year include Arbela TechnologiesBrandman UniversityManufacturing Executive Institute, and Compete Consulting Group. Event supporters provide additional value to attendees serving as a resource and advocates of this symposium’s focus on the ‘Global Supply Chain’. Compete Consulting Group, a new sponsor of APICS-IE, values the community of experts and resources that the Symposium will bring together to help those considering or trying to make improvements to their logistics operations. “Like APICS-IE does for its membership through the educational topics they present, it is our business to provide a new level of visibility and cost savings within the shipping industry,” notes Josh Dunham, Managing Partner of Complete Consulting.

With so many moving parts, it takes a virtual international village to support companies in navigating the global supply chain. “A global supply chain has so many connections and complexities that leveraging the right system to bring it all together is critical to the success of a business,” said Amir Khoshniyati of Arbela Technologies. “As part of the APICS-IE Symposium, we look forward to collaborating with attendees and hearing more about the secrets to success in navigating the supply chain. We are proud to support APICS-IE in delivering such a value-packed program.”

The APICS-IE Executive Panel & Networking Symposiums draws attendees from all over Southern California. Held twice yearly, platinum sponsor Manufacturing Executive Institute actively promotes attendance at the Symposium. “We support APICS-IE in providing opportunities for our members to learn from experts on topics like global growth and supply chain,” states Maggie Watson, Manufacturing Executive Institute. “We are proud to sponsor APICS-IE as we offer complimentary training programs and are dedicated to bringing relevant knowledge to individuals who are interested in making dramatic improvements in their manufacturing and distribution companies.”

Brandman University, a leading provider of undergraduate and graduate programs including those focused in supply chain management, is supportive of the APICS-IE programming and encourages students to attend. “Brandman University is proud to partner with APICS-Inland Empire to equip and empower this great community and region with the knowledge, skills, and abilities to have the finest supply chain professionals in the U.S.” says Nick Lacy, Director of National Relations.

The APICS-IE Fall Symposium: Navigating Global Supply Chain will be held Saturday, October 29, 2016 at the Eagle Glen Golf Club in Corona, Calif. Fees to attend the event from 8:00 AM to 11:30 AM are $15 for members, $25 for non-members and students are free. Breakfast buffet is included. Register online or cut and paste this link into your browser: http://events.r20.constantcontact.com/register/event?oeidk=a07ed1rzbt5632f374f&llr=pd7pgykab.