Here are some interesting or useful articles that I found recently.
Five tips: How to map your supply chain
As I wrote recently, buyers should try to have visibility in their supply chain — beyond their suppliers, into their sub-suppliers.
For example, of my clients desperately wants to know where a material, which is essential for his production and can make or break the final quality of his products, is sourced. However, his direct suppliers just won’t disclose it.
This article is a bit unrealistic when it comes to the Chinese business environment. But, if you are lucky and have cooperative suppliers (and you should probably put this forward as a deal breaker when you start discussions with potential suppliers), maybe you can follow the recommendations it lays out.
H&M turns eyes on Ethiopian factories
As I wrote before, the new destinations for importers who chase low wages in Asia will be… in Africa. Mega retailers such as H&M and Tesco are testing the waters. Small buyers should not consider this option seriously, though.
How to conduct a social compliance audit of a China factory (Checklist)
InTouch shared the common social audit checkpoints that correspond to Walmart’s requirements. They also shared a typology of risks: what findings represent a high risk, intermediate risk, and low risk. Very interesting.
Wal-Mart’s embrace of ‘Made in America’
The communication continues around the “rebirth of American industry” and the “re-shoring movement:
The day was an homage to manufacturing in the U.S., an effort that has been a priority for Wal-Mart since earlier this year when it pledged to buy an additional $50 billion in U.S. products over the next decade. (Wal-Mart took in $469 billion in revenues in 2012.)
50 billion in 10 years is 5 billion a year? That’s about 1% of their sales… Is this supposed to impress us?
Oh, and GE announces the creation of 150 jobs. Their total headcount is over 300,000. +0.05%! Great!
How to Make Sure Potential Suppliers Respond to Your Inquiries
Liz Long gives some excellent advice to new buyers who need to get the proper attention from potential suppliers. Read this article if you feel suppliers are not responsive enough!