Think Globally, Act Strategically

By George Wellock, Senior Management Consultant


George specializes in best practices in aligning business processes and technology.

Explore all options as you consider today’s “Made in the USA” logistics trend

Operations executives are naturally concerned with the big picture. By virtue of their role as supply chain leaders within their organizations, they must think globally. But in order to meet the needs of their customer base, they have traditionally focused on optimizing plants and warehouses under their control rather than using a broader, more collaborative supply chain approach.

As more businesses become global in scope, supply chain leaders must not only be experts in collaborative planning, forecasting and replenishment strategies but also must be conversant in such diverse topics as stability of foreign markets and how countries use their natural resources that impact strategic sourcing and global logistics decisions.

Recently, there has been a trend in logistics where more buyers are looking for US-based suppliers and businesses are making “Made in the USA” commitments; however it’s not a guarantee that reshoring will be the ultimate best practice. We believe that the best-in-class strategy is to explore all options as a part of your supply chain strategy and let the opportunities point the way for best results.

In order to take advantage of best practices in supply chain management, there must be a focus on two key supply chain models: strategic sourcing and global logistics.

Strategic Sourcing: A model for lower fixed costs

Strategic Sourcing is an organized approach to develop commodity strategies that deliver the right product at the right price and the right time. Well-developed Strategic Sourcing processes are a sure way to implement a lasting culture of continuous improvement and deliver significant business value / spend management. Strategic Sourcing optimizes the use of offshore resources, leverages category expertise, uses fit-for-purpose processes, and provides a scalable procurement model with lower fixed costs.

Global Logistics: A model for best combination of price and service

Global Logistics is the overall management of the way resources are obtained, stored and moved to the locations where they are required. Global logistics management entails identifying potential suppliers and distributors; evaluating how accessible and effective they are and establishing relationships and signing contracts with the companies who offer the best combination of price and service. A company might also choose to handle its own logistics if it is cost-effective to do so.

We have started to publish blogs focusing on these two critical supply chain models that will help you understand the value that they can bring to your organization. To take advantage of this trend in business, follow these links to learn more about Strategic Sourcing and Global Logistics Optimization.