The Monthly Supply Chain Essential Review
Reviews of the word's leading supply chain insight
Edition 3 | Summer 2023
IN THIS ISSUE
INSIGHT ARTICLE OF THE MONTH
“Rising inflation and its impact
in the world of logistics”
MAERSK
in the world of logistics”
About this Review
The Monthly Supply Chain Essentials Review by Global Supply Chain Group presents timely abstract reviews of the most relevant ‘open published’ perspectives and research reports from the world’s leading branded management consulting firms.
This publication ensures that executives and their consultants are exposed to the wide spectrum of high-quality supply chain related ideas, techniques and methodologies developed across the management consulting industry globally.
Relevant insights are identified and classified once only, either in a general category, or by topic alignment to an industry segment or a functional area using our proprietary taxonomy.
Advertising & Co-Branding
GSCG prepares The Monthly Supply Chain Essentials Review for its professionals and their clients as an aid to their career effectiveness and development. Each month, it is sent to over 100,000 executives around the globe. It is also co-branded and sent to thousands of executives belonging to leading professional associations. If your organization would benefit from redistributing, co- branding, or appropriate exposure in The Monthly Supply Chain Essentials Review then please contact Global Supply Chain Group at Raghav. [email protected]
Insight Sources
Global Supply Chain Group sources candidate insights for review from the best and most relevant material published openly by (at least) the following branded consulting firms: • Accenture • Maine Pointe • Bain • Capgemini • Gartner • Morgan Stanley • Ernst & Young • Zurich Insurance • IBM • KPMG • McKinsey & Company • PwC • BCG • JP Morgan • US Bank
About this Review
The Monthly Supply Chain Essentials Review by Global Supply Chain Group presents timely abstract reviews of the most relevant ‘open published’ perspectives and research reports from the world’s leading branded management consulting firms. This publication ensures that executives and their consultants are exposed to the wide spectrum of high-quality supply chain related ideas, techniques and methodologies developed across the management consulting industry globally.
THE MONTHLY SUPPLY
CHAIN ESSENTIALS
REVIEW
CHAIN ESSENTIALS
Message From the Editor:
The supply chain has been at the center stage of the global strategy world for the last two years. Almost everybody touched on this topic has something to say about it.
Not surprisingly, some of the best consulting companies in the world have a lot to say about
supply chains now. Some of the articles chosen for this edition are surprisingly good.
We have chosen nearly 22 of the best articles from various strong sources to review for this edition. They form a solid knowledge base in practical supply chain management and can guide the executives who choose to make the moves themselves. It is tough to choose between similar articles, each with some good points.
For this reason, our article of the month is complicated to choose this month. Yet, one article that captures this edition’s essence in its title is ‘Rising inflation and its impact in the world of logistics’ by MAERSK. Heartiest congratulations to the team at MAERSK for standing out in a crowded space with an attention-grabbing title.
Several other very good articles with four or five-star ratings must be mentioned here.Inflation and Supply chain strains are visible in these datasets by Bloomberg stands out with its strategic insights and concise message.
Enjoy this month’s editions, and don’t forget to forward them to your colleagues and
teams. They can get their copies by registering for free.
Contact us if you want our perspective on any of these topics or anything else related to your supply chain. After all, enhancing your supply chains has been our sole mission since January 2000. And there are many ways we give effect to this mission.
Vivek Sood
Global Editor
(Global Supply Chain Group)
Contents Of This Edition
Impact of Inflation on Supply Chain
Rising inflationand its impact in the world of logistics-MAERSK
Inflation, disruption and supply chains: Decisions to make now-Accenture
Inflation Is Back, Putting Supply Chains at Risk- Bain & Co
Chief Supply Chain Officers Must Adopt Strategies to Mitigate Inflation-Gartner
Supply Chain Squeeze- Morgan Stanley
How the great supply chain reset is unfolding- Ernst & Young
3 Major Impacts Of Inflation On Global Supply Chains – Forbes
Strategies to address inflation in the supply chain- Infosys
Procurement in an Inflationary World- AArte
How Inflation Can Impact Your Supply Chain- CNECT
About Global Supply Chain Group
Impact of Inflation on Supply Chain
ARTICLE OF THE MONTH
"Rising inflation and its impact
in the world of logistics"
MAERSK
in the world of logistics"
Inflation is a measure of the increase in prices of goods and services over time, and it is currently affecting various industries across the globe.
The article notes that inflation rates are currently rising globally, with the United States experiencing a 7% increase in consumer prices in January 2022, its highest level in 40 years. Rising inflation is caused by various factors, including supply chain disruptions, shortages of raw materials and labor, and increased demand for goods and services.
According to the article, the logistics industry is particularly vulnerable to the impact of inflation. Rising prices for fuel, raw materials, and transportation costs are driving up logistics costs, leading to higher prices for consumers and longer lead times for products. The article notes that businesses need to be proactive in their approach to managing these challenges, including diversifying supply chains, building up inventory levels, and investing in technology solutions that enable greater visibility and agility in their operations.
The article also highlights the importance of collaboration and partnership in mitigating the impact of inflation on logistics. By working together, businesses can better manage risks, optimize supply chain operations, and reduce costs. This includes collaborating with suppliers, customers, and logistics providers to identify and address areas of risk and inefficiency.
RATING: 9.5/10
"Inflation, disruption and supply
chains: Decisions to make now"
Accenture
chains: Decisions to make now"
The article discusses the impact of inflation and supply chain disruptions on businesses. It highlights that the global supply chain has been severely impacted due to the COVID-19 pandemic, causing disruptions in the production and delivery of goods. The article cites a recent survey by Accenture which found that 94% of executives have experienced supply chain disruptions, and 60% have experienced inflation-related disruptions.
The article suggests that businesses need to take proactive measures to mitigate the impact of inflation and supply chain disruptions. It notes that businesses need to build resilience in their supply chains by diversifying suppliers and leveraging technology to improve visibility and agility. The article also recommends that businesses collaborate with suppliers to develop contingency plans and explore alternative sourcing options.
The article concludes that while the challenges of inflation and supply chain disruptions may be daunting, businesses can overcome them by taking a holistic approach. The article emphasizes that companies need to be proactive in identifying potential disruptions and taking steps to mitigate their impact. By doing so, businesses can ensure they remain competitive and sustainable in the long run
RATING: 9/10
Impact of Inflation on Supply Chain
"Chief Supply Chain Officers Must Adopt
Strategies to Mitigate Inflation
Gartner
Strategies to Mitigate Inflation
The article from Gartner highlights the need for Chief Supply Chain Officers (CSCOs) to adopt resource conservation strategies to mitigate inflation and supply shortages. According to the research conducted by Gartner, CSCOs must shift their focus from cost efficiency to resource conservation, as inflationary pressures and supply chain disruptions continue to affect businesses globally.
The research further indicates that organizations that prioritize resource conservation and sustainability in their supply chain strategies can reduce their operating costs by up to 20%. The article also provides a ranking of the top countries with the highest carbon footprint, including China, the United States, and India, and stresses the need for these countries to focus on resource conservation to mitigate the impact of inflation and supply shortages.
The article concludes by emphasizing the critical role of CSCOs in driving sustainable and resource-efficient supply chain strategies, which can not only help mitigate inflationary pressures and supply chain disruptions but also support organizations in achieving their sustainability goals
RATING: 9/10
"Cost Inflation Is Back,
Putting Supply Chains at Risk"
Bain
Putting Supply Chains at Risk"
The article discusses the impact of rising costs and inflation on supply chains, particularly in the wake of the COVID-19 pandemic. It highlights that cost inflation is on the rise, with prices for raw materials and commodities increasing significantly in recent months. The article cites data from the US Bureau of Labour Statistics, which shows that the Producer Price Index (PPI) increased by 6.8% in November 2021, the largest year-over-year increase since records began in 2010.
The article notes that supply chains are particularly vulnerable to cost inflation, as rising prices can put pressure on margins and increase the risk of supply chain disruptions. The article highlights that companies need to take a holistic approach to managing supply chain risks, including building resilience in their supply chains, diversifying suppliers, and leveraging technology to improve visibility and agility.
The article concludes that while cost inflation and supply chain disruptions are significant challenges for businesses, there are steps that companies can take to mitigate their impact. The article emphasizes the importance of taking a proactive and strategic approach to managing supply chain risks, including developing contingency plans and working closely with suppliers. By doing so, businesses can help ensure that they are well positioned to navigate the challenges of the current economic environment and maintain their competitiveness in the long run.
RATING: 9/10
Impact of Inflation on Supply Chain
"Supply Chain Squeeze"-
Morgan Stanley
The article “The Supply Chain Squeeze: What’s Behind Rising Costs and Delays” from Morgan Stanley explores the various factors contributing to the supply chain squeeze in the global economy. The article highlights that supply chain disruptions have been a significant issue for companies in recent months, with 80% of global firms reporting supply chain disruptions due to the COVID-19 pandemic.
The article further examines the impact of supply chain disruptions on various regions, including Asia, Europe, and North America. The report indicates that Asia has been the most affected region, with China being the hardest hit country. In terms of mitigation strategies, the article provides recommendations for businesses to improve their resilience, such as diversifying their supplier base, increasing inventory levels, and leveraging technology to improve visibility across their supply chains.
The article also discusses the various factors contributing to rising costs and delays in the supply chain, such as container shortages, port congestion, and transportation constraints. The report highlights that these factors have led to increased shipping costs and longer lead times, which have negatively impacted businesses across various industries.
RATING: 9/10
"How the great supply
chain reset is unfolding
Ernst & Young
chain reset is unfolding
The article provides data that shows that 75% of companies experienced supply chain disruptions due to the pandemic, and that 47% of companies are planning to reorganize their supply chains to increase resilience.
The article discusses how the pandemic has accelerated the adoption of technologies such as automation, artificial intelligence, and blockchain in supply chain management. The article provides examples of companies in various industries that have implemented these technologies to increase efficiency and resilience in their supply chains.
The article also discusses the trend of nearshoring and reshoring, as companies are looking to reduce supply chain risk and increase flexibility. The article cites data that shows that the US has increased its share of global manufacturing from 16% in 2010 to 18% in 2019, and that Mexico and Canada are also benefiting from nearshoring.
The article concludes by highlighting the importance of collaboration and transparency in building resilient supply chains. The article notes that companies need to work together to share data and insights, and that governments can play a role in creating an enabling environment for supply chain resilience.
RATING: 8.5/10
Impact of Inflation on Supply Chain
"3 Major Impacts Of Inflation
On Global Supply Chains"
Forbes
On Global Supply Chains"
The article highlights the recent surge in inflation, with the US inflation rate reaching 5.4% in September 2022, the highest level in more than a decade. The article notes that inflation can have significant effects on supply chains, as it can increase the cost of raw materials, transportation, and labor.
The article discusses the impact of inflation on various industries, including the automotive industry, where the cost of semiconductor chips has skyrocketed, and the consumer goods industry, where companies are struggling to balance the increased cost of goods with consumer demand. The article notes that inflation is also affecting supply chains in emerging markets, where the cost of imported goods is rising due to currency devaluation.
The article also discusses the impact of inflation on global trade, noting that higher inflation rates in some countries are leading to trade imbalances and affecting supply chains. The article cites data that shows that China’s inflation rate has risen to its highest level in more than a decade, and that this is affecting global trade flows. The article notes that companies are turning to alternative sourcing strategies to reduce costs and mitigate the impact of inflation on their supply chains.
RATING: 9/10
"Strategies to address inflation
in the supply chain"-
Infosys
in the supply chain"-
The article notes that the recent surge in inflation has created challenges for supply chain management, as it has led to increased costs and reduced profit margins.
The article provides several strategies that companies can use to address supply chain inflation. One strategy is to optimize supply chain networks by reducing transportation costs and improving inventory management. The article notes that companies can use data analytics to gain visibility into their supply chains and identify opportunities for cost savings.
Another strategy is to implement pricing strategies that balance the need to maintain profitability with the need to remain competitive in the market. The article notes that companies can use dynamic pricing models and pricing analytics to adjust prices based on market conditions and demand.
The article also emphasizes the importance of collaboration in managing supply chain inflation. The article notes that companies can work with suppliers and customers to find mutually beneficial solutions that reduce costs and improve efficiency.
Finally, the article highlights the role of technology in managing supply chain inflation. The article notes that companies can leverage digital technologies such as automation, artificial intelligence, and blockchain to improve supply chain visibility and reduce costs
RATING: 9/10
Impact of Inflation on Supply Chain
"Causes and Effects of
Inflation on the Supply Chain"
Extensive
Inflation on the Supply Chain"
The article notes that inflation is a sustained increase in the general price level of goods and services over time, and can have a significant impact on supply chain operations.
The article provides an overview of the causes of inflation, including factors such as rising energy costs, increased demand, and supply chain disruptions. The article notes that inflation can have several effects on the supply chain, including higher input costs, reduced margins, and increased risk.
The article also highlights the impact of inflation on specific industries, such as the food and beverage industry, where higher commodity prices can increase production costs and reduce profitability. The article notes that inflation can also affect emerging markets, where currency devaluation can lead to higher costs for imported goods.
The article emphasizes the importance of supply chain management in addressing the impact of inflation. The article notes that companies can use strategies such as cost optimization, risk management, and strategic sourcing to manage the impact of inflation on their supply chains. The article also highlights the importance of data analytics in supply chain management, as it can help companies identify areas for cost savings and improve visibility into their supply chains.
RATING: 9/10
"Insights and analysis for enterprises
to thrive through inflation disruptions"
GEP
to thrive through inflation disruptions"
The article notes that inflation can have a significant impact on the cost of raw materials, labor, and transportation, which can in turn impact the cost of finished goods.
The article provides several strategies that companies can use to mitigate the impact of inflation on their supply chains. These strategies include negotiating long-term contracts with suppliers, diversifying suppliers and supply chains, and implementing cost management programs.
The article also notes that technology can play an important role in managing the impact of inflation on supply chains. The article highlights the importance of using data analytics to forecast inflation trends, and using technology such as blockchain to improve supply chain visibility and transparency.
The article also discusses the importance of collaboration between suppliers and customers in mitigating the impact of inflation on supply chains. The article notes that building strong relationships with suppliers and customers can help companies to manage risk and minimize the impact of inflation.
RATING: 9.5/10
Impact of Inflation on Supply Chain
" Inflation, pricing and
supply elevates the risk"-
KPMG
supply elevates the risk"-
The article contains the significant impact of rising inflation, pricing, and supply chain disruptions on businesses globally. The report indicates that inflation rates have reached their highest levels in decades, with the United States and Europe experiencing rates of over 6% and 5%, respectively. Meanwhile, the global average inflation rate reached 3.9%, its highest level since 2008.
The report states that the increasing cost of raw materials, labor, and transportation are driving up prices, which is leading to reduced margins for businesses. Additionally, the supply chain disruptions caused by the pandemic are exacerbating the situation, leading to delays and shortages of critical goods and services. As a result, businesses are facing a significant risk in terms of pricing and supply chain disruption, with nearly half of the companies surveyed ranking it as their top risk.
The report provides several recommendations for businesses to mitigate these risks, including implementing pricing strategies that reflect the changing cost structures, re-evaluating their supply chain strategies, and investing in technology solutions that enable greater visibility and agility in their supply chains. The report also emphasizes the need for businesses to monitor inflation and other economic indicators closely to stay ahead of potential risks and adapt their strategies accordingly.
RATING: 8/10
"Inflation and Supply Chain Strains
Are Visible in These Datasets"
Bloomberg
Are Visible in These Datasets"
The article notes that rising inflation and supply chain bottlenecks have led to increased costs for businesses, reduced availability of goods, and longer lead times.One key indicator highlighted in the article is the Producer Price Index (PPI), which measures the average change in prices that domestic producers receive for their goods and services. The PPI has increased by over 7% in the United States in the past year, its highest level since 2010. This increase is primarily driven by rising costs of raw materials, labor, and transportation.
Another key indicator is the Purchasing Managers’ Index (PMI), which measures the level of activity in the manufacturing sector. The article notes that the PMI has declined in several countries, including the United States, China, and Germany, indicating that supply chain disruptions are leading to reduced production and delays in delivering goods.
The article also discusses the impact of rising energy prices on inflation. The cost of natural gas, which is used to heat homes and power factories, has increased by over 300% in Europe in the past year. This increase is leading to higher energy costs for businesses and consumers, which is further exacerbating inflationary pressures.
RATING: 9/10
Impact of Inflation on Supply Chain
"The Effects of Inflation
on The Supply Chain"
Inbound Logistics
on The Supply Chain"
Inflation can create several challenges in the supply chain, including increased costs, reduced availability of goods, and longer lead times.
According to the article, the United States is currently experiencing inflation at a rate of 5.4%, its highest level in over a decade. Rising costs of raw materials, labour, and transportation are driving up prices, leading to reduced availability of goods and longer lead times. These challenges are impacting businesses across all industries, from manufacturing to retail.
The article notes that businesses need to be proactive in their approach to managing inflationary risks. This includes diversifying supply chains, building up inventory levels, and investing in technology solutions that enable greater visibility and agility in their operations. Businesses should also consider renegotiating contracts with suppliers to ensure they are getting the best possible prices.
The article also recommends that businesses closely monitor economic and political developments that could impact inflation, such as changes in interest rates or government policies. By staying informed and proactive in their approach, businesses can minimize the impact of inflation on their supply chains and remain competitive in an increasingly challenging marketplace.
RATING: 9/10
"There’s a new inflation warning for
consumers coming from the supply chain"
CNBC
consumers coming from the supply chain"
The article notes that supply chain disruptions caused by the pandemic, weather events, and geopolitical tensions have led to higher costs for businesses, reduced availability of goods, and longer lead times.
According to the article, the Producer Price Index (PPI) increased by 0.8% in January 2023, exceeding economists’ expectations. The PPI measures the average change in prices that domestic producers receive for their goods and services, and its increase indicates that businesses are passing on higher costs to consumers.
The article highlights several industries that are particularly affected by supply chain disruptions, including the auto industry, which is facing a shortage of semiconductor chips, and the food industry, which is dealing with higher costs for raw materials and transportation. These challenges are leading to higher prices for consumers and longer wait times for products.
The article also notes that businesses are struggling to manage supply chain risks, with 66% of companies reporting that supply chain disruptions have had a negative impact on their operations. The article suggests that businesses need to take a more proactive approach to managing these risks, including diversifying their supply chains, building up inventory levels, and investing in technology solutions that enable greater visibility and agility in their operations.
RATING: 8.5/10
Impact of Inflation on Supply Chain
"How Supply Chain Disruptions
Contributed to Inflation in 2021"
Federal Reserve bank of St.Louis
Contributed to Inflation in 2021"
The article notes that supply chain disruptions caused by the pandemic, weather events, and geopolitical tensions have led to higher costs for businesses, reduced availability of goods, and longer lead times.
According to the article, the Producer Price Index (PPI) increased by 0.8% in January 2023, exceeding economists’ expectations. The PPI measures the average change in prices that domestic producers receive for their goods and services, and its increase indicates that businesses are passing on higher costs to consumers.
The article highlights several industries that are particularly affected by supply chain disruptions, including the auto industry, which is facing a shortage of semiconductor chips, and the food industry, which is dealing with higher costs for raw materials and transportation. These challenges are leading to higher prices for consumers and longer wait times for products.
The article also notes that businesses are struggling to manage supply chain risks, with 66% of companies reporting that supply chain disruptions have had a negative impact on their operations. The article suggests that businesses need to take a more proactive approach to managing these risks, including diversifying their supply chains, building up inventory levels, and investing in technology solutions that enable greater visibility and agility in their operations.
RATING: 8.5/10
"Supply Disruptions Add to Inflation,
Undermine Recovery in Europe"
IMF
Undermine Recovery in Europe"
The article notes that supply chain disruptions caused by the COVID-19 pandemic, geopolitical tensions, and weather events have led to higher costs for businesses, reduced availability of goods, and longer lead times.
According to the article, inflation increased significantly in Europe in 2021, with the euro area inflation rate reaching 4.9% in November, its highest level in over a decade. The article notes that supply chain disruptions have played a significant role in driving up inflation, as businesses have been forced to pass on higher costs to consumers.
The article highlights several industries that have been particularly affected by supply chain disruptions, including the automotive industry, which has faced a shortage of semiconductor chips, and the construction industry, which has dealt with higher costs for raw materials and transportation. These challenges have led to higher prices for consumers and longer wait times for products.
The article also notes that supply chain disruptions are likely to continue to affect inflation and economic recovery in Europe in the coming months. However, the article suggests that policymakers can take steps to mitigate the impact of these disruptions, including supporting investment in digital technologies, reducing barriers to trade, and increasing cooperation among countries to address common challenges.
RATING: 9/10
Impact of Inflation on Supply Chain
"Supply Chains and US Inflation:
Short-Term Gains, Long-Term Pains?"
Goldman Sachs
Short-Term Gains, Long-Term Pains?"
The article states that the US inflation rate has been rising rapidly, reaching a 40-year high in October 2021, with supply chain disruptions being a key contributing factor. The article notes that this increase in inflation has caused concerns among policymakers and economists, who are worried about the long-term effects on the economy.
The article highlights several factors that have led to supply chain disruptions, including shipping delays, labor shortages, and supply shortages. The article notes that the COVID-19 pandemic has played a significant role in these disruptions, with lockdowns and travel restrictions leading to a reduction in manufacturing and shipping capacity. The article provides data to support this claim, citing a survey of supply chain professionals, which found that 94% of respondents reported disruptions to their supply chains as a result of the pandemic.
The article goes on to discuss the impact of these supply chain disruptions on US inflation. The authors note that the rise in inflation has been driven by increases in the prices of goods and services, with supply chain disruptions leading to higher costs for businesses, which are then passed on to consumers. The article cites data showing that transportation costs have risen by 45% in the past year, while the cost of raw materials has increased by 60% in some cases. The article also notes that businesses are increasingly turning to automation and other technological solutions to address supply chain disruptions, which could have long-term effects on the labor market.
RATING: 9/10
"Why broader market inflation
is fueling supply chain volatility"
SP Global
is fueling supply chain volatility"
The article highlights that consumer price inflation (CPI) rose 6.2% year-over-year in October 2021, the highest rate since 1990. The author suggests that this broader market inflation is leading to higher input costs and labor shortages, which in turn is causing supply chain disruptions.
The article highlights that supply chain disruptions are not limited to one particular industry or geography, but rather, are being felt globally across industries. The author suggests that this is due to the interconnectedness of supply chains and the fact that many goods and services rely on common inputs. The article also mentions that supply chain volatility has been exacerbated by the ongoing pandemic, which has led to a surge in demand for goods and services, while also disrupting production and transportation networks.
The article goes on to discuss the various factors contributing to the current supply chain volatility. The author mentions rising commodity prices, transportation constraints, and labor shortages as key drivers. The article suggests that these factors are leading to higher costs for businesses and consumers, as well as longer lead times and delivery delays. The article also highlights that supply chain disruptions are likely to persist into 2022 and beyond, with some experts suggesting that the current environment could lead to a “new normal” for supply chain volatility.
RATING: 8.5/10
Impact of Inflation on Supply Chain
"Procurement in an Inflationary
World"
AArte
World"
It notes that inflation has hit multi-year highs across most countries due to the pandemic’s impact on supply chains and economic activity. The article states that companies are facing instability caused by material shortages, logistics disruptions, and labor constraints, all of which are driving up costs and putting pressure on procurement departments.
The article provides some key insights on how procurement professionals can navigate these challenges. It suggests that companies need to reassess their procurement strategies and identify areas where costs can be reduced. For example, they may need to consider shifting from a “just-in-time” ordering model to one where they order components and products far in advance. Companies can also explore alternative suppliers to find lower-cost options and increase supply chain resilience to mitigate the impact of inflation.
The article also highlights the importance of data analytics and technology in creating more resilient and agile supply chains. It notes that companies need to invest in intelligent data analytics and technology platforms to gain end-to-end visibility and predictive capabilities. By doing so, they can better manage risk, respond faster to disruptions, and ultimately achieve greater prosperity.
Finally, the article touches on the need for reskilling and upskilling of procurement professionals to adapt to the changing technological landscape. It notes that the logistics workforce is willing and ready to become more digitally proficient, with nearly nine in ten employees seeing digitalization as an opportunity to learn new skills. The article suggests that robotics as a service will become increasingly popular as a way to automate warehouse tasks and reduce labor costs.
RATING: 9/10
"Procurement in an
Inflationary World"
AArte
Inflationary World"
It notes that inflation has hit multi-year highs across most countries due to the pandemic’s impact on supply chains and economic activity. The article states that companies are facing instability caused by material shortages, logistics disruptions, and labor constraints, all of which are driving up costs and putting pressure on procurement departments.
The article provides some key insights on how procurement professionals can navigate these challenges. It suggests that companies need to reassess their procurement strategies and identify areas where costs can be reduced. For example, they may need to consider shifting from a “just-in-time” ordering model to one where they order components and products far in advance. Companies can also explore alternative suppliers to find lower-cost options and increase supply chain resilience to mitigate the impact of inflation.
The article also highlights the importance of data analytics and technology in creating more resilient and agile supply chains. It notes that companies need to invest in intelligent data analytics and technology platforms to gain end-to-end visibility and predictive capabilities. By doing so, they can better manage risk, respond faster to disruptions, and ultimately achieve greater prosperity.
Finally, the article touches on the need for reskilling and upskilling of procurement professionals to adapt to the changing technological landscape. It notes that the logistics workforce is willing and ready to become more digitally proficient, with nearly nine in ten employees seeing digitalization as an opportunity to learn new skills. The article suggests that robotics as a service will become increasingly popular as a way to automate warehouse tasks and reduce labor costs.
RATING: 9/10
Impact of Inflation on Supply Chain
"How Procurement Organizations
Can Protect Against Inflation"
ISM
Can Protect Against Inflation"
To protect themselves from the negative impact of inflation on their operations. According to the article, inflation has been on the rise globally, with a 2.6% increase in the United States alone from March 2020 to March 2021.
The article identifies several factors that have contributed to inflation, such as supply chain disruptions, rising commodity prices, and increased demand for goods and services. To mitigate these effects, procurement organizations can focus on several strategies, including securing long-term contracts with suppliers, increasing inventory levels, and leveraging technology to improve supply chain visibility.
Additionally, the article highlights the importance of cross-functional collaboration within procurement organizations. By working closely with other departments such as finance and operations, procurement can better understand their organization’s needs and make informed purchasing decisions.
RATING: 9.5/10
"How supply chain disruption
and inflation impact procurement"
Fraxion
and inflation impact procurement"
The article highlights that procurement and supply chain management have become increasingly important in recent years as companies strive to reduce costs and improve efficiency. The article emphasizes the need for companies to adopt best practices in procurement and supply chain management in order to achieve these goals.
The article provides several statistics to illustrate the importance of procurement and supply chain management. For example, it states that procurement typically accounts for up to 70% of a company’s costs, making it a critical area for cost optimization. The article also cites a report by Deloitte, which found that companies with efficient supply chains are twice as likely to be profitable compared to those with less efficient supply chains.
The article also discusses several factors that are critical to effective procurement and supply chain management. These include strategic sourcing, supplier relationship management, inventory management, and logistics optimization. The article provides detailed explanations of each of these factors and highlights the benefits of adopting best practices in each area
RATING: 8.5/10
Impact of Inflation on Supply Chain
"How Inflation Can Impact
Your Supply Chain"
CNECT
Your Supply Chain"
The article starts by highlighting that inflation is currently on the rise, with the Consumer Price Index (CPI) reaching a 13-year high in June 2021. The article then delves into the impact that this inflation can have on supply chain costs, including the increased cost of raw materials and transportation. The article highlights that these increased costs can result in decreased profits for businesses that rely on supply chains.
The article then goes on to provide some tips for managing supply chain costs in an inflationary environment. One key strategy is to negotiate with suppliers for better prices or terms. The article suggests that businesses can use their leverage as a customer to negotiate better prices or more favorable payment terms, such as longer payment cycles or discounts for early payment. Another strategy is to explore alternative suppliers or transportation methods, as these can sometimes provide cost savings. Additionally, the article suggests that businesses can look to optimize their inventory levels to reduce the impact of price fluctuations.
The article also highlights the importance of technology in managing supply chain costs. It suggests that businesses can use supply chain management software to track costs and identify areas for cost savings. This technology can also help businesses to better forecast demand and plan for potential disruptions to the supply chain. Finally, the article emphasizes the importance of communication and collaboration in managing supply chain costs. It suggests that businesses should work closely with their suppliers and logistics providers to identify cost-saving opportunities and address any potential issues before they become major problems.
RATING: 8/10
Mission
We strengthen our clients' profitability from within the supply chain. Your profits are under constant attack from your suppliers, competitors, customers, and many other directions. Our mission is to identify and defend weak links in the supply chain and leverage the strong links to maximize profitability over extended periods of time
Vision
To be the premier thought leadership institution in Supply Chain governance and strategy – working with the boards, CEOs, and our client teams to strengthen profitability of our clients’ corporations.
Insight Sources
Global Supply Chain Group sources candidate insights for review from the best and most relevant material published openly by (at least) the following branded consulting firms: • Accenture • Maine Pointe • Bain • Capgemini • Gartner • Morgan Stanley • Ernst & Young • Zurich Insurance • IBM • KPMG • McKinsey & Company • PwC • BCG • JP Morgan • US Bank
Confidentiality & Intellectual
Property
Global Supply Chain Group does not wish to disclose its client identity alongside its project details, nor will it, without their express written authorization.
Global Supply Chain Group have the experience, openness, and time to understand the unique system dynamics underlying every supply chain.
Our unique 5 X 5 supply chain dynamics model helps pinpoint the exact root cause of the supply chain problem, and the level of project intervention required for protecting your profitability from supply chain attacks of your adversaries. Uniquely among the consulting companies, it aids in just the right level of intervention at the right element of each supply chain for every project.
Our clients include local, regional, and global organizations supply chain leading companies across almost every major industry and sub sector. Client references are available from board members, CEOs, C-suites, executives, and middle management who enthusiastically support our dedication to supply chain management with fit for purpose highly experienced teams working alongside client teams.
Further Information or Enquiries: Global Supply Chain Group
“Rising inflation and its impact
in the world of logistics”
MAERSK
in the world of logistics”
Email [email protected] or visit our website at www.globalscgroup.com