Tech News, Magazine & Review WordPress Theme 2017
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us
No Result
View All Result
No Result
View All Result
Home Supply Chain Updates

Tariffs, Technology Top of Mind for Supply Chain Leaders

usscmc by usscmc
November 18, 2019
Tariffs, Technology Top of Mind for Supply Chain Leaders
Share on FacebookShare on Twitter

Supply chain leaders have a lot on their plate these days.

A recent survey, “2109 Cognitive Sourcing Study”, released by LavaData, a company that delivers applied AI,  asked more than  200 senior procurement and supply chain leaders at global manufacturing firms about a variety of issues including technologies and tariffs.

In the tariff department, 89%, are concerned that tariffs will cause production costs to increase over the next year. The top five U.S. industries they expect to be hardest hit are industrial manufacturing, consumer goods, automotive, technology, and telecommunications.

Respondents noted a range of tactics they’re likely to take to reduce the impact of the expected cost increases:

  • 45% hope to find savings by making their production process more efficient.

  • A majority (54%) acknowledge they’ll have to pass these costs on to consumers.
  • 43% plan to renegotiate part supply deals, essentially passing cost increases to their suppliers.

As manufacturers consider restructuring their supply chains in the wake of tariffs and global uncertainty, they cited U.S. cities with a high cost of living that they’ll seek to replace or avoid — New York (32%), Los Angeles (15%) and Miami (9%) in particular. Hong Kong (15%) and Shanghai (9%) were the two Chinese cities in the top five that manufacturers plan to move away from.

And, while respondents think the tariffs will be more harmful to North America than China in the near term, a majority believe the U.S. (45%) and Canada (26%) will benefit in the long term.

Turning to technology, a surprising number of manufacturing organizations still rely on outmoded analog processes, but there is increasing movement toward advanced technology solutions:

  • A majority (58%) of respondents say their supply management sources are still managed by individual commodity managers, but 50% have at least some sort of central system for storing supplier insights and spend data.
  • 50% still rely on Excel spreadsheets or data warehouses with limited tracking of market intelligence. However, this figure is down steeply from 2018 (61%). 
  • 44% of the respondents do not use a cost management tool for NPI. 

While only 8% report using a purpose-built sourcing platform in 2019, this signaled significant AI adoption compared to 2018 (5%).

“This year’s survey shows that a surprisingly high number of enterprise NPI and sourcing teams are still using the same analog systems and processes that they have been using for more than 20 years: individual category managers with spreadsheets. The lack of centrally located data alone exposes these companies to significant risk,” explained Rajesh Kalidindi, founder and CEO of LevaData. “Meanwhile, a small but growing number of companies are adopting transformative technologies that will allow them to strategically consider millions of data points affecting the supply chain. These companies are able to significantly outmaneuver competitors.”

Organizations Limited by Narrow View of Strategic Sourcing Success

But manufacturing organizations aren’t just limited by analog processes. There is also a pervasive failure to think about strategic sourcing on a larger scale. 

Although there’s a clear opportunity for strategic sourcing to improve a company’s speed and agility, only 5% of respondents cited “building a competitive advantage” as a key measure of strategic sourcing success. The majority (68%) were focused on cost- cutting. 

Additionally, strategic sourcing, procurement and NPI teams continue to be handicapped by the amount of time they spend “fighting fires”: 46% of respondents say at least a quarter of their time is spent on these tasks. “Compare this to best-in-class companies, which we’ve found spend less than 15% of their time this way,” Kalidindi added.

Finally, despite the fact that most respondents (60%) view their procurement teams as “excellent” partners, they may be considering them from a traditional perspective. Confidence in this team to handle digital transformation continues to decline; in 2017, 52% of respondents felt this team was “somewhat or very ready” for digital transformation, but this figure declined to 46% in 2018 and to 40% in 2019.

 

usscmc

usscmc

No Result
View All Result

Recent Posts

  • Volkswagen Announces Pricing of 25% Equity Stake Sale in Porsche
  • Can software simplify the supply chain? Ryan Petersen thinks so
  • A strategic approach to cost reduction for banks and fintechs
  • Study examines supply chain issues and opportunities
  • Instacart acquires hyper local grocery e-commerce platform

Recent Comments

  • Top 5 Supply Chain Certifications that are in high demand | Top 5 Certifications on Top 5 Globally Recognized Supply Chain Certifications
  • 3 Best Procurement Certifications that are most valuable | Procurement Newz on Top 5 Globally Recognized Supply Chain Certifications

Archives

  • September 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • September 2019

Categories

  • Global News
  • Supply Chain Updates

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor

Pages

  • Home
  • Terms of Use
  • Privacy Policy
  • Disclaimer
  • Antispam
  • Contact Us

Categories

  • Global News
  • Supply Chain Updates
slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor slot gacor slot slot gacor 2023 slot 2023 slot gacor terbaru slot gacor terpercaya slot gacor

Tags

APICS Globally Recognized Supply Chain Certifications IIPMR Certifications International Institute for Procurement and Market Research (IIPMR) ISM Next Level Purchasing Top 5 Supply Chain Certifications top supply chain certifications

Trending

No Content Available
  • Antispam
  • Contact Us
  • Disclaimer
  • Home
  • Privacy Policy
  • Terms of Use

© 2023 www.usscmc.com

No Result
View All Result
  • Home
  • Supply Chain Updates
  • Global News
  • Contact Us

© 2023 www.usscmc.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT