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Sep 27, 2023 · By embedding CO 2 reduction into every sourcing decision, fostering expanded value chain transparency, and resetting the supply base through advanced demand-management and technical value-creation levers, procurement can align sustainability ambitions and cost-reduction targets.
- Inventory and capacity buffers. Buffer capacity is the most straightforward way to enhance resilience, whether in the form of underutilized production facilities or inventory in excess of safety stock requirements.
- Manufacturing network diversification. In response to the U.S.- China trade war, many companies have begun to diversify their sourcing or manufacturing bases.
- Multisourcing. In 2011, major natural disasters in Japan and Thailand disrupted supply chains across the world and exposed companies’ reliance on single sources of supply.
- Nearshoring. Beyond multisourcing, some companies want to reduce geographic dependence in their global networks and shorten cycle times for finished products.
If companies are to reap the full benefits of their supplier relationships, they will need to fix these gaps in their capabilities and supplier management processes. Doing so will require changes to contracts that encourage suppliers to play the most useful role they can in the value chain.
Jul 7, 2020 · Closer relationships between buyers and suppliers could create significant value and help supply chains become more resilient. New research sheds light on the ingredients for success.
Jul 30, 2024 · A value chain is a step-by-step business model for transforming a product or service from idea to reality. Value chains help increase a business’s efficiency so the business can deliver the...
Dec 3, 2020 · Supply chain management: Value chain analysis provides insights into how each component of the supply chain adds value to the final product or service, which can lead to better supplier coordination and logistics management.
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Summary. Increasingly, multinational corporations (MNCs) are pledging to procure the materials and services they need from companies committed to fair labor practices and environmental protections.
