Global logistics/supply chain management: Down economy poses fresh challenges for high-tech sourcing

- Interesting article from logisticsmngmt.com

SAN FRANCISCO—Risk management takes on new meaning for supply chain managers doing business overseas during a global recession, said key industry analysts.

Sourcing from low-wage countries like China seemed like such a logical idea before the world’s economy went south, said C.J. Wehlage, research director, AMR Research. But with demand continuing to slacken, logistics decision-makers are now more concerned about maintaining the integrity of their pipeline.

“The failure of some suppliers in China has become an issue,” he said. “And having the low-wage option is not such an advantage if quality and reliability suffer.”

Wehlage was among the featured speakers at this week’s “High-Tech Forecasting & Planning Summit,” organized by the London-based IE Group. His presentation mirrored a study done by AMR Research last year, finding that volatile fuel, energy, and commodity prices rank highest in areas of global risk.

China is the region that contributes the most risk to global supply chains, that study concluded.

“And for high-tech companies requiring more solutions in a down economy, the complexity of reliable sourcing is even more intense,” he said. 

The future of forecasting and that of sales and operations planning (S&OP), was also being addressed at this summit. Wehlage noted that in some ways shippers could benefit by one aspect of the recession.

Find the rest of the article here.