This blog post is the continuation of our Identifying the Factors for Successfully Managing Supply Chain Risks – Factor 1 – Corporate Strategy (Part 1 of 5) research post. Our recent study to better understand supply chain risks focused on the structure, implementation, and maintenance of a formal system for managing risks in the supply chain.
Supply chain risks that ultimately cause supply chain disruptions cost high growth technology companies millions annually and even worse a large disruption event can cause smaller firms to cease operations. We conducted a study to better understand supply chain risks which focused on the structure, implementation, and maintenance of a formal system for managing risks in the supply chain.
Incoterms, or International Commercial Terms, are a set of three-letter trade terms standardized by the International Chamber of Commerce (ICC). Using these terms properly will allow clear communication of the tasks, costs, and risks associated with transporting goods between your supplier (Seller) and your company (Buyer).
We are fortunate to work with some of the most innovative OEMs, Tier Is/IIs/IIIs and Aftermarket companies in the world and have launched supply chain operations in the US and EU that have included everything from carbon fiber wheels to electric vehicles.
One of the most important decisions a high-growth technology company faces in its early stages is whether to manufacture components and the final product using its own resources (make) or to outsource the manufacturing process to another company (buy).
As companies grow and evolve it is statistically inevitable that supply partners will come and go. There are many reasons why a company may want and/or need to transition supply partners such as supplier financial instability, poor quality performance, and production supply disruption.
When considering where to build your supply base, source components, and source finished products, the prevailing idea seems to be that domestic sourcing allows for better quality control and shorter time to market, while international sourcing is cheaper. Both of these facts can be true, which can make it difficult deciding when to choose one over the other and these oversimplifications may lead to poor strategic decisions.
The golden age of software technology may soon collide with the future of efficient manufacturing. Additive manufacturing and 3D printing processes are now carving a niche by integrating computer programming and CAD with component manufacturing. According to the data from research firm Canalys, the 3D printing industry is forecasted to grow by 56 percent to $5.2 billion in 2015 and quadruple in growth over the next five years.