This author penned a guest commentary on the Chainalytics blog in late January indicating that the implications of Omni-channel commerce are more profound for supply chain leaders. In that commentary, I amplified that the implications of Omni-channel commerce are becoming much more profound for B2C focused supply chain leaders. The commentary was purposely blunt because the trends and implications of consumers who have become much more accustomed to online buying will reverberate across supply chain organizations with strategies anchored in former brick-and-mortar store-based distribution and customer fulfillment strategies. It was meant to be a wake-up call. Our takeaway from the posting was that consumer-facing industry supply chain leaders need to quickly internalize the reality that permanent changes in shopping behavior are underway and that education for the broader business and internal supply chain team needs to proactively begin as to the implications of these fast-moving trends. The “Amazon effect” is […]
Four weeks ago, Supply Chain Matters called attention to the good news – bad news world of today’s aerospace focused supply chains. We cited a Bloomberg Businessweek report that posed a fundamental question- with over 10,600 firm orders for new commercial aircraft among Airbus and Boeing, when is order backlog too big? Many of these new and technology laden fuel efficient aircraft orders are destined to support expected explosive Asia focused air travel growth. But, what happens when the CEO of Asia’s fastest-growing discount airline and other airline executives begin to communicate an air of caution. A more recent Bloomberg published report now indicates that Asian aviation guru Tony Fernandes, CEO of AirAsia has cautioned that the jet buying frenzy among Asian based carriers may give way to a more sober approach that reflects the current airline challenges of intense competition, pilot shortages and inadequate infrastructure. That is significant since […]
The Effects of Asset Management Strategies- Who Really Owns Accountability for Overall Risk Management?
Industry supply chains have constantly had to respond to business needs for overall cost reduction. This author can recall numerous supply chain executive surveys dating back to the early part of this decade, all pointing to supply chain cost reduction as one of any top three organizational challenges. While the severity of such pressures tended to vary, the extreme being the global of recession that began in 2008-2009, they have since established numerous structural supply chain changes. These changes included transferring more cost risk into lower tiers of the supply or value-chain as well as the shedding of assets. The consul of CFO’s was to avoid, as much as possible, the ownership of hard assets. A clear byproduct of the implications of shedding assets or outsourcing asset management was who owns overall accountability for risk management. This relentless pressure to improve return-on-assets has, as this community well knows, led to far […]
General Hospital Has Been Cancelled! – A Need for Renewed Emphasis on Healthcare Supply Chain Management
A Supply Chain Matters Guest Contribution from Rich Sherman So you think that Obamacare is changing the healthcare industry in the United States? Think again. It’s just the tip of the iceberg. The healthcare industry is undergoing a fundamental transformation from delivering patient treatments to delivering patient outcomes. And, it’s turning the industry upside down. The television series General Hospital may have celebrated its 50th anniversary last year; but, in real life General Hospital is about to be cancelled. With the transformation to patient outcomes, healthcare providers simply can’t afford to treat anything generally. Specialty patient outcome centers (SPOC) are emerging throughout the healthcare industry. With nurse practitioners having expanded diagnostic and treatment licensing, general health clinics are appearing in every corner drugstore, 24/7. Emergency treatment and diagnostic centers are emerging in every strip mall. SPOCs, such as oncological, cardiac, ophthalmic, orthopedic, cosmetic, etc. for every ailment are emerging in […]
We along with other recognized supply chain thought leaders have been raising awareness to the current talent shortages regarding areas of supply chain management, particularly individuals with experience related to linking the introduction of new products and product management with overall supply chain ramp-up and ramp-down deployment needs. One of globe’s top-ranked supply chains, Apple, has been under considerable pressure of-late because of the perception that its product innovation cycles have slowed and industry competitors are quickly narrowing the gap in surpassing such capabilities. A newly published report from the Wall Street Journal (paid subscription or free metered view) places a poignant perspective to Apple’s growing need. The report indicates that Apple is in the midst of hiring hundreds of new engineers and supply chain managers across China and Taiwan in its attempts to speed product development and introduce a wider range of innovative products. The report notes that current victims […]
The CEO of A. P. Moller-Maersk, operator of the globe’s largest ocean container shipping line as well as various oil exploration and transport services interests, has declared to the company’s investors that the firm will likely experience flat profitability growth through 2016. Maersk has elected a business strategy to reduce its dependency on the current turbulent ocean container shipping segment by currently investing in oil production, ports and bulk shipping activities. According to a Reuters published report, CEO Nils Smedegaard Anderson once again declared, as was the case in October 2013, that over-capacity remains prevalent across ocean container shipping and that it will be not until at least 2016 until the industry compensates. Maersk is currently investing in its oil related businesses but profits in the line’s oil and drilling segment are expected to fall in 2014, adding additional challenges to its overall business strategy. However, Anderson declared that Maersk […]