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As an SME business leader, owner, or advisor, thank you for driving one half of the gross domestic product in the top 17 countries around the world (according to the World Bank). We need you now more than ever!
I wish you much entrepreneurial success.
Phil Symchych
Founder
Global Business Advisors Forums
From Art Koch's Entropy Busters® Series - How that's Plan "B" for your China Supply Chain?
"What's Plan "B" for your China Supply Chain?" I started with, "Let's start with the realization that plan "A" to relocate operations to China had a major flaw. If you moved manufacturing to China, India or any other low-cost producing country with the intention of importing goods back to North America or Europe (half a world away), then your plan was unsound!" The primary focus was on inventory velocity, total cost of ownership and the ethics of investing. Now we are in the middle of a S^&% storm of COVID-19 with world-wide impact to supply chains and the global economy. Please follow the above link for full article.
What lessons can we learn?
- Focus on long-term and not quarterly profits.
- Don't ignore the warning signs.
- Avoid group think. Just because other organizations are "doing it" does not mean it's a good idea. As the guardian, of an enterprise there is a requirement to think beyond the current frame of focus.
- We need to think regionally.
- Focus on inventory velocity, part and process quality, and become a zealot for total cost of ownership.
- Software providers have done an excellent job of "selling" integrated supply chain solutions. However, how integrated can your enterprise be with 90 to 120 days of total pipe line inventory?
- Manufacture products regionally for regional customers.
- The stewardship of low cost country sourcing.
- Imagine customer loyalty when your enterprise keeps products and services flowing when others can't?
With on-shoring, we are likely to see inflation pressure. What can your enterprise do to avoid this during the up coming months?