Top 5 Supply Chain Reads to Start Your Week - July 2, 2018

Posted by Eunice Marigliano on Jul 2, 2018 12:45:21 PM

Each week we look for the best blog posts, articles, and commentary on supply chain orchestration, logistics innovation, and industry news to share.

This week we're reading about operational KPIs of the future, business anecdotes of supply chain retooling in the face of Trump tariffs, the untapped opportunities in retail and e-commerce reverse logistics, the imperative to tear down supply chain walls as evidenced by a recent KPMG study of consumer/retail executives, and the state of UK supply chains and their handling of international commerce.

Let's get started...

What Are the Operations KPIs of the Future? - By Supply Chain Dive (@SupplyChainDive), Deborah Abrams Kaplan (@KaplanInk) - As the supply chain continue to gain ground as an important strategic differentiator for organizations, this article details a variety of metrics used by external financial and industry analysts as well as internal operations managers.  For instance, macroeconomic factors like interest rates have placed renewed focus on working capital management and as customer expectations have skyrocketed, percentage fulfilled in a day.   

Trump Tariffs Force Companies to Rework Supply Chains - By Reuters (@Reuters), Rajesh Kumar Singh (@rajeshkumarsgh) - Businesses are scrambling to address the financial and supply chain implications of new US tariffs on China. Many have begun to manage investor expectations on margins, product pricing, and sales volumes. Uncertainty about the permanence of the tariffs have companies with manufactured inputs taking stock of their ability to source from other geographies and manufacture these inputs domestically.

SMC3: E-commerce Magnifies Reverse Logistics, but Other Verticals are Growing - By FreightWaves (@FreightWaves), John Paul Hampstead (@JPHampstead) - Covering a talk on reverse logistics by FedEx Supply Chain at the industry event, SMC3’s Connections18, some impressive, though not all that unsurprising, numbers. The United States retail market is worth $4.7T annually with $340.4B in e-commerce sales. Reverse logistics dwarfs e-commerce, representing a $642.6B segment of the industry. And consider 9% of all retail brick-and-mortar purchases become returns, while in e-commerce, the percentage of returns rises to 30%.

Tear Down Walls to Optimize the Supply Chain - By Supply Management/CIPS, (@cipsnews) Paul Simpson - Reporting on interesting results from the sixth KPMG Global Consumer Executive Top of Mind survey entitled No Normal is the New Normal, in which 530 top executives in the consumer/retail sector were surveyed on their supply chains. Four out of five executives believe their supply chain is not optimized to suit changing customer needs, while only 22% said their supply chain is fully integrated. The study authors argue for more adoption of open and collaborative platform models as a way to compete as the pace of change continues to reward flexible, fit-for-purpose supply chains.

Supply Chain Inefficiencies Costing UK Businesses More than £1.5bn - By Supply Chain Digital (@SupplyChainD), James Henderson - In an analysis of over 100 shipments from a cross section of UK industries, international freight forwarder, Zencargo, suggests that UK businesses that trade internationally are wasting over three hours on average per individual shipment. They found employees spending time on phone calls and emails to request and funnel data back and forth between their trade partners, the majority of which already exists on partner systems. With Brexit looming on the horizon, those numbers are expected to only get worse.

And that's our five for the week. Did we miss any? Tweet to us @MPObjects and let us know!

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