Living in a Material World: Direct Materials Sourcing

from marketwire.com

80% of enterprises cite cost reduction as the primary driver of their direct materials sourcing programs, according to a new report published by Aberdeen, a Harte-Hanks Company (NYSE: HHS).

“The Direct Materials Sourcing Benchmark Report” also reveals that while cost reduction is the top priority, sourcing programs that highly focus on process and collaboration that are most likely to achieve these savings. Leading sourcing groups engage product/design teams sooner in the process and show greater spend under management and superior savings as a result.

The new study found that Best-in-Class enterprises are blending technology solutions and strategic actions to enhance their direct materials sourcing programs to place almost all of their direct materials spend under management.

Understanding Demand: A Critical Enabler Of Supply Chain Excellence

from industryweek.com

An accurate demand forecast is of no value to the firm unless it is part of a formal, disciplined process for decision-making.
By Mark A. Moon, Ph.D., Associate Professor, Department of Marketing and Logistics, The University of Tennessee

June 6, 2007 - A few years ago, our research team worked with a company that manufactured and marketed women’s lingerie. Like so many companies in this age of global supply chains, much of the manufacturing process had been moved offshore to Asian sewing operations, where sewing costs were so much lower than those costs would be in the United States.

US Logistics Costs Jumped 11% in 2006

from earthtimes.org

A key benchmark report released today shows logistics costs in the US rose dramatically again during 2006. Fueled primarily by rising energy costs, interest rates, and inventory carrying costs, the Council of Supply Chain Management Professionals’ 18th Annual State of Logistics Report shows logistics costs increased $130 billion over 2005 to $1.305 trillion for 2006.