As I am writing this, in mid-2022, we're living in pretty unprecedented times. The Covid pandemic is ongoing, tensions between major world powers are at a high, previously solid supply chains and business practices are crumbling, inflation is rising affecting all kinds of costs, politics are causing countries to become more insular and closed-minded, and shipping is still a mess. Today's manufacturing businesses need to find suitable supply chain risk reduction strategies to help counter these … [Read more...]
Supply Chain Risk Analysis: Learn from Past Issues
I have written a number of posts over the past couple of years about supply chain risk management. This one is a short addition to the series. As I wrote before, volatility, uncertainty, complexity, and ambiguity (collectively called VUCA) are making supply chain managers' jobs much more difficult than in the previous 30 years. The latest hair-raising events are the sudden lockdowns of certain cities and provinces of China, forcing tens of thousands of factories to stop all activity … [Read more...]
How War In Ukraine Could Negatively Affect Global & Chinese Supply Chains [Podcast]
In this episode… We discuss how wars like the one waged on Ukraine by Russia right now could affect global supply chains. In particular, could China be affected, and if so, how? Is the West likely to decouple from China in the future in a similar way as they have done with Russia? Finally, Renaud leaves you with some guidance on ways to diversify your suppliers and therefore reduce the chances of supply chain disruptions and risks. Just hit the play button to start … [Read more...]
Tips For Importers To Survive CNY 2022 [Podcast]
In this episode… Chinese New Year is a tricky time for importers. 2021 has seen the continuing pandemic, sea freight costs skyrocketing, and logistics systems crumbling. High material and component costs and chip shortages have added gas to the fire, too. So the last thing you need is to get stung by the annual CNY shutdown and the issues that go along with it, such as shoddy quality, disrupted supply, and disappearing suppliers, to name but a few. As CNY is approaching, Renaud gives some … [Read more...]
How Does Mexico Compare To China As A Manufacturing Base? [Podcast]
In this episode… Dan Harris from China Law Blog recently wrote: "Mexico is the New China" and Manufacturers are Moving There. Renaud Anjoran and Adrian from the team explore the topic of nearshoring to locations like Mexico, why it may especially suit US companies, what Mexico's manufacturing pros & cons are in comparison to China, assessing your supply chain risk, and Renaud finishes off by giving some guidance for importers who are interested in moving some or all of their … [Read more...]
Supply Chain Risk Management: No, Toyota Doesn’t Always Do Just-In-Time
I ran into a very interesting article from Bloomberg entitled How Toyota Steered Clear of the Chip Shortage Mess. Nearly all automakers announced that they would have to cut their production numbers due to a serious shortage of semiconductors. This was made even worse by a recent fire in a Japanese manufacturing plant. One might think Toyota would be seriously impacted by the general market situation and by one of their suppliers being temporarily unable to produce. Apparently, Toyota … [Read more...]
Have You Revised your Supply Chain Risk Analysis?
Last year, I wrote about the Business Continuity Plan (BCP). More and more companies request their suppliers to prepare a BCP, as a structured approach to performing a supply chain risk analysis to get prepared for the risks they are exposed to. If you haven’t revised your BCP in 2020 and 2021, you have probably been caught off guard by recent events. But the question everyone is wondering is, ‘can we even forecast what is going to happen?’ … [Read more...]
Richard Barnett | Electronics Supply Chain Risk Management in 2021 [Podcast]
Let's hear from an electronics supply chain expert about how to improve supply chain resilience and reduce risks... Richard Barnett of Supplyframe, an expert in electronics supply chains with decades of experience in Asia, joins Adrian to discuss risk management & reduction in the global electronics supply chain. After the year many importers of electronics had in 2020, reducing risks, improving supply chain agility and resilience, and planning ahead as standard has now become more … [Read more...]
Why Do Importers Need Product Reliability Testing? [Podcast]
Product reliability testing is a must for importers who want to avoid risk... 2020 added considerable strain and difficulty to many importers' lives, so today, more than ever, it's so important to implement measures to protect your business against expensive recalls and lawsuits which may occur if your products don't reach expected reliability, quality, and safety standards. Undertaking thorough product reliability testing during the development and manufacturing stages is one such way to … [Read more...]
Manufacture in China, Vietnam, India, or Elsewhere in 2021? [Podcast]
Manufacturers continue to plan the move of some or all of their supply chains out of China? But where next? Perhaps the word 'exodus' is a little over-dramatic, but there has certainly been a marked rise in companies trying to diversify their manufacturing operations away from China alone since around 2018. One reason is the US/China trade war and the punitive tariffs imposed by the US government on some 'Made-In-China' goods, but we can't discount the coronavirus pandemic, as the manufacturing … [Read more...]