Continuous cost reduction in the manufacturing industry is a supply chain best practice, but all too often it is mistakenly seen as unsustainable by strategic sourcing and procurement departments. For many companies the question is, ‘how can I reduce costs while limiting the impact on quality?’ Before jumping right to substituting materials, there are other options for delivering cost savings - yes, even over time.
In the first part of this two-part series, I established the reasoning behind establishing a diverse supply chain in the nontraditional sense. Emphasis on maintaining a supply chain that is diverse in geographical location, capabilities, and overall corporate values is vital in maintaining supply chain resiliency, sustainability, and adaptability. To achieve a supplier mix that fits these goals, the right questions must be asked during an internal supplier rationalization process, overtaking the traditional values of an RFx.
Supplier diversity is a concept with multiple definitions. Most commonly, a supplier diversity program focuses on the utilization of women owned, minority owned, and else certified diverse businesses within your supply base. There is, however, another interpretation of supplier diversity – a diversity of geographical location, sourcing practices, and overall organizational structure. Evaluating these factors in a meaningful way when evaluating suppliers can be an important factor in managing supply chain resiliency, sustainability, and adaptability.
Anyone who has ever completed a Request for Proposal (RFP) has had the unfortunate experience of informing all but one or two suppliers they have not been awarded the business. It may be difficult and at times uncomfortable, but when the unchosen supplier is the incumbent, there is more to manage than just this conversation. How this transition process is handled can either help or hinder the success of moving to a new supplier relationship. There are a few steps you can take to smooth the transition and ensure all parties are as satisfied as possible.
With the increased pressure to offer viable advantages over their competition, telecom giants like AT&T and Verizon have recently placed greater emphasis on how well equipped their networks are for the rapid increases in data consumption by consumers. While carriers show promising advances in “future proofing” their networks’ ability to accommodate such changes, it ultimately depends on how well their new network is designed to adapt to the rapidly changing technology available to meet increased demands.
The way we do business is changing rapidly. Workplaces are virtual – with employees working flexibly: at any time, from any location, and using many different devices. In the face of such continuous change, it is important to ask if your network infrastructure truly “futureproof.” Whether your organization is national or global in scale, it is imperative to execute any infrastructure related improvements based on both immediate and future goals.