American women will do almost anything in their power to slow the aging process, including spending millions annually on moisturizers and creams. That's despite the fact that people in their mid to late 50s are generally happier and experience less stress, compared with young adults in their 20s, according to a study published in March 2010.
It turns out, well-being changes with age. Things get better. People become less stressed and enjoy themselves more. The study on aging suggests that after age 50 both women and men had about the same levels of happiness and tended to feel better overall about their lives.
I'm wondering if the same is true for high-tech supply chains. About 96 percent of the executives managing their companies' strategies now feel pressure to increase efficiencies and boost profit, according to a recent state-of-the-industry report from Eye For Transport.
What Have You Done for Me Lately?
In the survey, high-tech electronics manufacturers and retailers were asked to identify the most effective supply chain cost-cutting measures. Low and behold, improving internal efficiencies came in at 77 percent; improved forecasting, 49 percent; and cheaper or better sourcing of materials, 45 percent. The responses were markedly similar to a previous study, with the exception of a reduction in the number making staff or salary cuts.
As the supply chain continues to mature it seems as though companies need to dig deeper to find the cuts to save money and improve profits. The study suggests this level of satisfaction -- call it happiness -- could come from the ability to quickly implement platforms and processes, which could include integrating cloud computing or software as a service (SaaS) applications. In an earlier blog post I ask the EBNOnline.com community to provide feedback on how cloud computing might improve efficiencies in the supply chain. (See: Google Chrome Might Improve the Supply Chain.)
Long Knives
Ironically, the results revealed a changing perspective among high-tech executives with regard to forecasts. The survey indicates that in many cases the recession highlighted the danger of relying too heavily on forecasting to determine how to manage supply chain operations. It also points to the importance of risk management.
Interestingly, the study showed that a greater number -- 11 percent -- of retailers have recently discontinued using certain Asian suppliers. The report suggests more companies have begun to move away from Asia and are relocating operations closer to home. (Have you done this? Why?)
So, what will your company's supply chain look like this year, compared with the past, as it ages and the concept of system optimization continues to mature? How do you cut costs from an aging supply chain to keep it happily increasing profits? Will the more experienced supply chain executives prevail?
I liked the analogy you have drawn from the age factor. By the time people reach 50 they would have planned their retirement and feel secure. If they haven't then they have to struggle for day to day needs. For companies the better way to age is to improve internal efficiency thats so true. Make everything computerized, be with the latest technlogy and most importanly make your customers grow profitable.
according to me i will definitely use the resources available to the maximum to reach the required demand and profits. A closed integration along with a clear visibility of the suplly chain should exist. always revamping of strategies should take place finally adding value to the company and its supply chain. cost cut down can take place by utilizing its own manufacturing capability in an efficient way and an improved outsourcing methodology will create wonders.
Laurie, you mention "the study showed that a greater number -- 11 percent -- of retailers have recently discontinued using certain Asian suppliers. The report suggests more companies have begun to move away from Asia and are relocating operations closer to home." I would guess that the weaker dollar is a factor. The savings that result from obtaining supplies from Asia go down when the dollar has much less buy power there. Do you have any other theories about it?
Anandvy, thank you for your input. I agree that rising transportation costs have promoted the move, but do you really think manufacturing will head back to China once the dollar strengthens? How long do you think that will take? Is it that easy to move manufacturing, or do you think the move back to local areas has been in the process for some time, even before the weak dollar?
Thank you SP for your feedback. It's interesting writing about the marketing and advertising industry these days because I see many of the innovations that began in the electronics industry move to online advertising and marketing.
For one, the advertising industry has just begun to tie paid search advertising to inventory replenishment systems. Each time a product becomes out of stock the online paid search ad set up to run on search engines no longer serves up on search queries.
When the last product gets sold it triggers a signal to remove the ad from search engine query searches. Interesting stuff. Maybe in a future post I'll outline some of the changes I'm seeing. It just goes to show that innovations in the supply chain lead to change in other industries. The mature industry teaches the emerging.
Laurie Sullivan, I belive this is temporary phenomenon. But at the same time I am not surprised if Inflation in China increases and thus in turn making it unsuitable for primary outsourcing destination. Countries like Phillipines, Indonesia still hold lot of potential.
All the countries you mentioned on your list,face Inflationary concerns thanks primarily to Money Printing by Western Central Banks who are flooding the world with Unheard amounts of liquidity.That problem is not going away anytime soon unless Asia makes a conscious decision to dump the US Dollar as World Reserve currency.If that happens the entire Global financial system will collapse first before a new system emerges,wherein America will most probably default on all its Liabilities.
It is in the best interests of most of the current Global participants to keep the current system going for as long as it can,inspite of the fact that it no longer serves everyones needs well enough.But then,When have we ever gotten any foresight from our Politicians & central Banks??? They have and continue to be reactive rather than proactive to the many problems that our World faces today.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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