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11/21 Live Chat: Manufacturing Insights With IDC & UPS

177 comments on “11/21 Live Chat: Manufacturing Insights With IDC & UPS

  1. Hailey Lynne McKeefry
    November 19, 2013

    The study results are live. Here are some links to more info on the Change in the (Supply) Chain study from UPS:

    Final Press Release
    Executive Summary
    White Paper
    Video

  2. Ken Rankin
    November 21, 2013

    Test

  3. Ken Rankin
    November 21, 2013

    Test

  4. Ken Rankin
    November 21, 2013

    Test

  5. Hailey Lynne McKeefry
    November 21, 2013

    Hello Ken… It's working!

  6. Ashu001
    November 21, 2013

    Hi Folks!I am personally very-very tired(had a Long hard day at work so far)!

    I am sure this EBN Chat will Cheer me up Bigtime!

    Bring it on!!!

  7. Hailey Lynne McKeefry
    November 21, 2013

    Glad you'll be with us, Tech4People! This is going to be a great one i'm sure. Stay tuned. We're starting at the top of the hour!

  8. Hailey Lynne McKeefry
    November 21, 2013

    We will be starting at 11:00 a.m. PST/2:00 p.m. EST sharp. First, though, there are two housekeeping notes:

    First, please make a copy of your post before hitting the “post” button – just in case.  If the system “eats” one of your carefully crafted thoughts, please hit “Ctrl-Z” to recover it.

  9. Hailey Lynne McKeefry
    November 21, 2013

    Second, if you have problems posting, we suggest trying a different browser.  IE9 is a popular choice, but sometimes find Firefox, Chrome, or Safari work better.

     

  10. Hailey Lynne McKeefry
    November 21, 2013

    This will be a fun, fast, and friendly conversation, so please do not hold back with your comments or questions.  There are no dumb questions and we value everyone's point of view.

  11. Hailey Lynne McKeefry
    November 21, 2013

    Questions, theories, ideas, real world experiences and even friendly rants are welcome here.

  12. Hailey Lynne McKeefry
    November 21, 2013

    And always, please announce your arrival so we can give you a warm EBN welcome and offer you some virtual  guacamole. 🙂

  13. Hailey Lynne McKeefry
    November 21, 2013

    Also let me intorduce our guests:

    Ken Rankin, director of high-tech segment marketing at UPS. In his job he is resonsible for:
    – understanding the changing supply chain needs within the fast-paced High Tech industry,
    – recommending, developing and executing “go-to-market” strategies positioning UPS's suite of solutions that create quantifable benefit for UPS's High Tech customers & prospective customers
    – driving thought leadership efforts for UPS within the High Tech industry

     

  14. Hailey Lynne McKeefry
    November 21, 2013

    Simon Ellis currently leads the supply chain strategies practice area at IDC Manufacturing Insights. Within the supply chain practice, Mr. Ellis specializes in advising clients on LCS (Low Cost Sourcing), Lean, Six Sigma and more. Mr. Ellis also contributes his supply chain expertise to IDC Retail Insights research. With over 20 years of experience in the industry, Mr. Ellis most recently was the Supply Chain Strategy Director/Futurist for Unilever North America, a $12 billion division of Unilever, the maker of such well-known products as Dove, Suave, Wisk, All, Q-tips, and Vaseline. Mr. Ellis was responsible for leading the implementation of key new technologies that impacted the future of the Unilever Supply Chain. Specifically, he led the North American RFID and e-Catalog teams, and was the project leader for the new Data Management Organization.

  15. Ashu001
    November 21, 2013

    Do the Senior Execs from IDC and UPS see a massive Amount of Growth in Vehicles using Natural Gas instead of Diesel for Transportation in North America today? Has this cut costs decisively for these companies?

  16. Ashu001
    November 21, 2013

    What is the Biggest Obstacle to further Efficency in the Supply Chain currently? Governments???

  17. JimOReilly
    November 21, 2013

    What sort of inventory reductions are attainable with on- or near-shoring?

  18. Hailey Lynne McKeefry
    November 21, 2013

    Thanks for getting the ball rolling, Jim and Tech4People. We'll start in about 10 minutes

     

  19. Hailey Lynne McKeefry
    November 21, 2013

    For a little light reading on what we're talking about today, take a glance at these resources on the study:

    The study results are live. Here are some links to more info on the Change in the (Supply) Chain study from UPS:

    Final Press Release
    Executive Summary
    White Paper
    Video

  20. Ken Rankin
    November 21, 2013

    Good afternoon Hailey, Ken Rankin from UPS is here…….looking forward to our “live chat”

     

  21. sellis
    November 21, 2013

    Hello everybody! Glad to be here.

  22. Hailey Lynne McKeefry
    November 21, 2013

    Looks like are guests are here…we'll get started in about four minutes.

  23. Hailey Lynne McKeefry
    November 21, 2013

    I want to welcome everyon today. As always, let us know when you arrive so we can give you a big welcome and point you to the virtual refreshments. 

  24. Hailey Lynne McKeefry
    November 21, 2013

    To get the ball rolling, why don't you give us a bit of a recap of the scope of the study and what the study covered. That way, people will know the areas that the study and can craft their questions accordingly

  25. JimOReilly
    November 21, 2013

    Guacamole, chips and beer…the highlight of the week!

  26. Ken Rankin
    November 21, 2013

    This was the 4th year of the survey conducted by IDC Manufacturing Insights.  This year's study was global covering nearly 350 interviews with high-tech supply chain executives.  The study emcompassed 4 key areas incliding: near-shoring, customer-centric supply chain focus, high-tech product lifecycle and emerging markets.

  27. Hailey Lynne McKeefry
    November 21, 2013

    @Jim and the supply chain of course! I'm excited, because really is there any organization who knows more about the supply chain than UPS?! I'm glad we got them to stop by before the big holiday rush…

  28. Hailey Lynne McKeefry
    November 21, 2013

    Let me bring Jim's starting off question to the top: What sort of inventory reductions are attainable with on- or near-shoring? @simon, maybe you could weigh in

  29. sellis
    November 21, 2013

    From a simplistic perspective, you save inventory based on the lead-time reductions.

  30. Ken Rankin
    November 21, 2013

    Lets get the ball rolling with one of the 1st headlines…..”Near-shoring is on the rise”…….our study found that the % of high-tech companies considering near-shoring has tripled since 2010.

     

  31. sellis
    November 21, 2013

    So if near-shoring takes your average lead-time down from 120 to 30 days, then you should be able to reduce safety stocks by 90 days.

  32. sellis
    November 21, 2013

    Things are always more complex than that, but it is a place to start.

  33. Hailey Lynne McKeefry
    November 21, 2013

    @all, i was at a counterfeit components symposium and was sitting next to a guy at lunch whose speciality was helping OEMs move to mexico. According to him near shoring has a lot of advantages and the topic is only going to get hotter.

  34. JimOReilly
    November 21, 2013

    Simon, That's a huge improvement in inventory turns. There's also a benefit in mix quality

  35. sellis
    November 21, 2013

    Well, its a conceptual level, often complexities dilute things

  36. Ken Rankin
    November 21, 2013

    Of those companies near-shoring….a few key drivers bubbled up…..#1 improving service levels by brining production closer to demand…..#2 improving control over quality & intellectual property

  37. sellis
    November 21, 2013

    But inventory reductions can be quite dramatic

  38. Hailey Lynne McKeefry
    November 21, 2013

    @Ken, what do you think is behind the rapidity of the shift and will that trajectory continue?

  39. Tom Murphy
    November 21, 2013

    Greetings all. I had a great conversation this morning with a fellow about the avocado supply chain.  I whipped up some guacamole and now I'm primed to talk tech.

  40. Ashu001
    November 21, 2013

    do the Guests here(from IDC and UPS) also believe that China is building up way too much INventory in most Electronic Components(which will evntually lead to  massive Inventory Pileup)?

  41. Hailey Lynne McKeefry
    November 21, 2013

    Also, let's not lose Tech3Poeple's question: What is the Biggest Obstacle to further Efficency in the Supply Chain currently? Governments???

  42. sellis
    November 21, 2013

    I think of it in terms of the three Ws – weather, war and workers

  43. sellis
    November 21, 2013

    as the things that get in the way of SC efficiency

  44. Hailey Lynne McKeefry
    November 21, 2013

    @Tom, glad to have you with us! I was wondering if you would show up, Guac in hand.

  45. Ashu001
    November 21, 2013

    @Ken-Do you believe cheaper Natural Gas/Electricity in the US is not a significant factor in Near-Shoring?

  46. Hailey Lynne McKeefry
    November 21, 2013

    Also Ken and Simon, What do you think are the most important- or surprising- findings from this year's survey?

  47. sellis
    November 21, 2013

    Don't think of near-sourcing necessarily as being the US. For US demand it could be Mexico …. or the Carribean

  48. sellis
    November 21, 2013

    Where you choose to make your products should be the sum total of ALL costs – energy costs are certainly part of it!

  49. Ken Rankin
    November 21, 2013

    @Hailey Clearly moving from 10% to 27% in 2013 gives us a pretty good sense that near-shoring is gaining momentum.  I would not be surprised to see this slow-gradual shift continue over the next several years.  Clearly high-tech comapnies are re-eavaluating their suply chains……it's simply no longer a “set it & you can forget it” exercise

  50. JimOReilly
    November 21, 2013

    Mexico has been lower cost but also lower quality, and worker turnover is historically generally horrendous. Is that changing?

  51. Hailey Lynne McKeefry
    November 21, 2013

    @Sellis, i also suspect it will never be all or nothing proposition. Organizations are going to do some stuff in one place and some in another. I wonder if some organizatoins won't build things in various parts of the world then bring the assembly domestic.

  52. sellis
    November 21, 2013

    One of the more surprising things to me was how relatively poorly companies self-report managing the back end of the product lifecycle.

  53. Ken Rankin
    November 21, 2013

    @tech4people This years survey did not focus on natural gas or electricity but as Simon mentioned it is certainly a factor in the near-shoring equation

  54. Tom Murphy
    November 21, 2013

    Ken, Simon: Reality check.  How much electronic manufacturing is going to come back to the US from China?  Can you each, please give me your best guestimate as a percentage?  (My guess is we're talking about a very, very small number. Am I right?)

  55. sellis
    November 21, 2013

    @Hailey, yes, I think that is correct. Supply constraints, for example, may limit where you can get components, but not where you do final assembly.

  56. JimOReilly
    November 21, 2013

    Companies like Synnex Sanmina and Flextronics have been for years acting as finally configuration on-shore for volume produced boxes made in China for the Dells and HPs of the world. The question is are they ready to move down the assembly tree to do more integration?

  57. Ken Rankin
    November 21, 2013

    @Hailey…..another important finding from this year's study was the “Rise of the Customer-Centric” supply chain.

  58. Ashu001
    November 21, 2013

    @Tom-You will be surprised.The Google NExus is a World-wide Best-seller currently.

    I am guessing a lot of folks love the “Made in USA ” Stamp there..

  59. sellis
    November 21, 2013

    Remember – near-shoring is not just about bringing supply back to the US – it is about bringing supply closer to demand; wherever that demand may be in the world.

  60. Tom Murphy
    November 21, 2013

    Another factor that seems to be influencing the supply chain is the lifecycle of a product itself, which in consumer electronics is somewhere between 12 and 18 months now — and it's continuing to shrink.  That isn't much to get a product from conception/design to the store shelves of BestBuy two months before Christmas.   Has that driven some of the near-shoring decisions?

  61. Hailey Lynne McKeefry
    November 21, 2013

    @Jim, the guy I was talking to was saying that the move to Mexico was more related to the closing of thousands of factories in China–no more goverment support. They are looking for cost. I didn't hear much from him about quality one way or the ohter (Should have asked!)

  62. Hailey Lynne McKeefry
    November 21, 2013

    Bringing Tom's question to the top again: Ken, Simon: Reality check.  How much electronic manufacturing is going to come back to the US from China?  Can you each, please give me your best guestimate as a percentage?  (My guess is we're talking about a very, very small number. Am I right?)

  63. Ashu001
    November 21, 2013

    @Sellis-Which is the Fastest Growing Market for Electronics today? A Place where you can't avoid Building Factories in ;so as to take full advantage of the Near-Shoring trend.

  64. JimOReilly
    November 21, 2013

    Apple is the prime target for “Made In America” The publicity would give US industry a huge boost. Apple is already moving Mac production on-shore, but that's small potatoes

  65. Tom Murphy
    November 21, 2013

    Tech4People: I think you're right about that Made in USA stamp.  I have a Samsung phone and I think it's a marvelous machine.  But I think a lot of the world still believes that it's better if it's American.

  66. JimOReilly
    November 21, 2013

    Foxconn is deploying robots to replace all those cheap Chinese workers. Putting a chunk of those in the US gets on-shoring done quickly!!!!

  67. Ashu001
    November 21, 2013

    @Hailey-Don't forget about Green-house Gas emissions.Thats the Reason by Chinese Govt are slowly but Surely Cutting incentives for Manufacturers there.

  68. Hailey Lynne McKeefry
    November 21, 2013

    @Jim, Google is another example right? Most of these big organizations are dipping their toes in the water.

  69. Ken Rankin
    November 21, 2013

    @Tom 19% of the based North America survey respondents plan to nearshore, but globally, that figure was 27%.

  70. Tom Murphy
    November 21, 2013

    Jim:  I think Apple is making some of its high-end machines here (or planning to) to appease its customers who were outraged paying top dollar for phones assembled for pennies in Chinese sweatshops. It doesn't quite fit with the image of Apples as tools for the elite.

     

  71. sellis
    November 21, 2013

    @Tom, well, highest growth rates are in emerging (emerged?) countries, so from the perspective of Chinese demand, near-shoring is about building facotries there … or in India

  72. Tom Murphy
    November 21, 2013

    Ken: Wow! Thank you for that. That's quite a figure.  And, to clarify, those folks currently have operations offshore?

  73. JimOReilly
    November 21, 2013

    Labor is a small portion of most well-designed assemblies. I made PCs in volume, and we had just 20 minutes labor total per unit.

  74. Hailey Lynne McKeefry
    November 21, 2013

    @Tech4People, I have to admit that i don't know as much about politics in china as i should. Guess i'm going to have to do some research!

  75. Tom Murphy
    November 21, 2013

    Simon: Thanks! Got it. 

    But what is driving near-shoring the most?  Is it the price of fuel, labor costs, time to market? What?

  76. Ashu001
    November 21, 2013

    @Hailey-Just see the Air Pollution in China(Its all over the Blogosphere)!!! Its totally-totally insane today.

  77. Ken Rankin
    November 21, 2013

    @Tom The top driver behind nearshoring was the desire to improve service levels by bringing production to demand. This interest in reducing lead times was also a factor among high tech companies that were refocusing their supply chains toward customer centricty (71%).

  78. Ashu001
    November 21, 2013

    @Hailey-Couple that with Water and Land Pollution and China is in a Pretty Pickle today!

  79. sellis
    November 21, 2013

    @Tom, in the survey, primary driver of near-shoring was about improving service performance.

  80. JimOReilly
    November 21, 2013

    India is very keen to near-shore. They expect quite a business boom as a result. It'll be interesting to see if China stays chepa enough to prevent India becoming a primary importer of electronics into the pRC

  81. Tom Murphy
    November 21, 2013

    Jim: You're right about the assembly.  I'm frankly amazed that it makes sense for Apple to make iPhones in China.  You'd think it could be done close to the relevant market without significantly changing the unit price.

  82. Ken Rankin
    November 21, 2013

    @Tom High tech companies consider themsevles product innovation experts (59%), but only average (or lagging) on the other areas of the product lifecycle, like product launch, reverse logistics and product retirement.

  83. Tom Murphy
    November 21, 2013

    Thanks Jim:  But would you please define “improving service performance?”  I'm not sure what that means in this context.

  84. sellis
    November 21, 2013

    @Jim, challenge in India has always been the infrastructure problems – is that changing? Probably! But will not happen overnight.

  85. JimOReilly
    November 21, 2013

    I estimated around $3/unit cost uptick to onshore iPhones, offset by savings of a robotic line, and inventtory-related costs.

  86. Tom Murphy
    November 21, 2013

    Sorry: Meant this for Simon…
    Would you please define “improving service performance?”  I'm not sure what that means in this context.

  87. JimOReilly
    November 21, 2013

    Simon, I see millions of UPS motorbikes moving parts in India :)))

  88. Ken Rankin
    November 21, 2013

    Another key insight from the survey revealed that high tech product launches are becoming increasingly important (48%)….but lesss than half (46%) consider themselves market leaders in this product lifecycle stage.

  89. Tom Murphy
    November 21, 2013

    Jim:  That's sounds about right, maybe even a little high.  And $3 seems quite insignificant for a $500-600 phone.

  90. sellis
    November 21, 2013

    @Ken, to add, material affect on lifetime profitability of a product by managing the back end of the lifecycle.

  91. Hailey Lynne McKeefry
    November 21, 2013

    In terms of the findings around the high-tech product lifecycle, the study foudn that most companies do not see themselves as market leaders in the tail-end of the product lifecycle. I found that surprising. What pointers do you have for for organizations that want to enhance their capabilities at every step of the product lifecycle?

  92. JimOReilly
    November 21, 2013

    Ken, That's interesting. Apple just got the mix wrong on 5S versus 5C phones almost everywhere. A short pipeline would have avoided price dumping in some places, and prevented a dent in the “image”

  93. Tom Murphy
    November 21, 2013

    Ken, your figure on innovation doesn't surprise me.  In fact, I'm surprised that only 3 in 5 consider themselves strong innovators because, if you're going to be in tech, I think rule no. 1 is to Innovate.

    But I am surprised that there isn't more focus on time to market.  Clearly, lifecycles are shrinking and timing a product from development to sales is really getting to be the name of the game — but I'm probably preaching to the preacher on that, aren't I?

  94. sellis
    November 21, 2013

    @Jim, 'fashion' drives hitech almost as much as technology does. On eof the reasons we see a return of postponement.

  95. Ashu001
    November 21, 2013

    @Jim-The Indian Government has already slapped all kinds of Tariff Barriers in place to reduce Finished Electronic Imports into India.You have to basically assemble them there to save on Taxes.As India is an extremely Cost Conscious Market;that 10%-15% in Savings makes a BIG-BIG Difference.

  96. Ken Rankin
    November 21, 2013

    @Hailey – great question! UPS partners with high tech companies to successfully manage every stage of their product lifecycle – from day-definite product launches to distribution/fulfillment and even post-sales/returns.

  97. Tom Murphy
    November 21, 2013

    Ken:  So about half the sampling thought launches were important and about half said they weren't market leaders in launches.   I”m guessing the ones who think they are good at it are the same ones who are the market leaders in it.   Is that right? Did you look at that?  

    I think there may be something to be said for the philosophy of relying more on price/value comparisons than on a strong marketing push, although I think both are important to end users.

  98. Ashu001
    November 21, 2013

    @Ken/Ellis-Do you see Demand from Companies for Recyling Components effectively?

  99. JimOReilly
    November 21, 2013

    I did a major experiment with short cycles at NCR a few years back. We got down to 12 days on hand for total inventory. We found that we could remove the need for spares inventory in the early years of product life by sparing from the line. Savings were large and spares were current.

    Onshoring or near-shoring helps this along, dcompared with the traditional “Made in China” method

  100. Ken Rankin
    November 21, 2013

    @Tom Both time-to-market and time-to-volume were cited as critical aspects of the product lifecycle by 53% of survey respondents.

  101. Hailey Lynne McKeefry
    November 21, 2013

    @Tom, i think some of the attention to the global launches comes from some big name companies doing it so well. Think Apple. But it's a lot harder than it looks!

  102. sellis
    November 21, 2013

    @Tom, high correlation between companies who think time to market is important and market leaders, yes.

  103. JimOReilly
    November 21, 2013

    Recycling in China is getting old for both the US and China. Dumping trash on poorer countries isn't exactly ,oral. We need to get our act together. Realising that we have some vast open spaces in the US should readjust our perspectives. A trash-handling facility in Boondocks USA might well be acceptable. It is inevitable, though greedy companies might hold it off a decade or so!!

  104. JimOReilly
    November 21, 2013

    Simon, I think that's very true. Crisp execution is the sign of a well tuned company

  105. Scott Ferguson
    November 21, 2013

    Hi Everyone. I showed up a little late.

  106. Ken Rankin
    November 21, 2013

    @tech4people Yes, we're seeing demand for repair and recycling. In fact, we have solutions to address the needs of our customers. Earlier this year, we announced a collaboration with Jabil to expand our suite of product repair offerings.

  107. Hailey Lynne McKeefry
    November 21, 2013

    @Scott, glad to have you with us! I can't promise that there's any guacamole left, but i'm sure we can rustle up some chips.

  108. Scott Ferguson
    November 21, 2013

    I had a question as long as it hasn't answered, specifically: Are there any hot emerging markets for high and electronics that you guys can point to for us?

     

  109. Ken Rankin
    November 21, 2013

    @Scott – Welcome…we've got some guacamole for you. 🙂

     

  110. Ken Rankin
    November 21, 2013

    @Scott – great question. Our 2012 Change in the Chain study uncovered India, Brazil, China and Indonesia as 4 hot areas driven by the emerging middle class and their heavy appetite for smartphones and tablets.

  111. Tom Murphy
    November 21, 2013

    Hailey: No question — big launches are planned for months, often starting while a product is still in the development phase.  If there's a snag in the supply chain, the whole effort can turn into a disaster.  And, yes, Apple is the epitomy of a company that normally does it well.  Smaller companies must feel outclassed when competing on that level.

  112. Hailey Lynne McKeefry
    November 21, 2013

    @Tom, its like juggling but with 105 balls. 🙂

  113. JimOReilly
    November 21, 2013

    One of China's selling points has been metal-bending for cabinets. It's cheaper in China, but the cost of shipping finished metal is eating up the difference in cost. US makers are capable of on-demand production using laser cutters, plasma torche robots and computerized bending machines.

    It is a call now as to where computer cabinets should be made, and with the cabinets goes most of the assembky work.

  114. Hailey Lynne McKeefry
    November 21, 2013

    @Ken, I find it surprising that Indonesia is on that list… but it makes sense when you think about it.

  115. Ken Rankin
    November 21, 2013

    @Tom, great point. 26% of respondents said ensuring product security throughout the supply chain was a challenge during global product launches.

  116. Scott Ferguson
    November 21, 2013

    @Ken: That's interesting and you have half of the BRIC countries there. How did Indonesia make it's way into there.

  117. JimOReilly
    November 21, 2013

    Small companies need to heed the “twice as fast for half the price” rule. Their biggest barrier to sales is that there is not sufficient reason to take a risk buying from them.

  118. Ken Rankin
    November 21, 2013

    Let's hear from you…are you considering nearshoring in the near future?

  119. Ashu001
    November 21, 2013

    @Ken-What about Stripping the Electronic Components to extract Precious Metals and Rare Earths from them? Do you see that happening regularly?

     

  120. Tom Murphy
    November 21, 2013

    Today's guacamole comes from a fellow who grows 20 acres in Escondido along with about 100 plants of tobacco (Cuban seed!).  He tells me his trees each need 30 gallons of water a day, but produce up to 300 pounds of fruit. 

    In my mind, this makes bringing avocados to market about as risky as bringing a phone to market. Critical timing, exacting planning, delicate handling, fickle consumers, and conditions that may be out of your control — like the price of water and predicting supply from competitors.  Don't even mention off-shoring….a nightmare for California farmers.

    See…guacamole does make sense in tech chats.

  121. Ashu001
    November 21, 2013

    @Ken-We are already 70% Onshore today.Taxbreaks ,IP Issues and Customer Focus matter more to us

  122. Hailey Lynne McKeefry
    November 21, 2013

    @Ken, product security is getting really critical. Not only are the supply chain systems getting more open but also products are getting more internet connected.  Check out our latest velociyt emag on the topic of security and the supply chain: http://dc.ubm-us.com/i/207639

  123. Ashu001
    November 21, 2013

    @Tom-Too funny!

  124. sellis
    November 21, 2013

    @tech, has it always been 70% – or were you offshore previously?

  125. Hailey Lynne McKeefry
    November 21, 2013

    @all, any thoughts on Ken's question: are you considering nearshoring in the near future?

  126. Tom Murphy
    November 21, 2013

    Ken: I can't speak for anyone but myself, but centering manufacturing in Asia has never really made much sense for anyone but the largest players, and even they have gotten burned by it at times.  For SMBs, the cost savings in labor (as Jim pointed out) is relatively small compared to the headaches that can go with it.  And, as you pointed out, the growing markets globally suggest near-shoring will be the next critical strategy for agile manufacturing.

  127. Ken Rankin
    November 21, 2013

    @tech4people – Tell me more about the customer benefits of onshoring. And, what have you experienced in terms of lead time reduction?

  128. Jamescon
    November 21, 2013

    Has there been any kind of domino effect from GE's decision last year to bring more of its appliance manufacturing back to the US? Was that just a blip? Or are manufacturers saying, “Me too”?

  129. Ken Rankin
    November 21, 2013

    @Tom – Your spot on! Our study also found that smaller companies were nearshoring at a higher rate (34.5%), compared to overall 27%.

  130. Hailey Lynne McKeefry
    November 21, 2013

    Welcome, JimC. Glad you could stop by!

     

  131. JimOReilly
    November 21, 2013

    It would seem that some right-thinking city/state governments could tip the financials from near-shoring to on-shoring. Maybe Detroit and Chicago??

  132. Scott Ferguson
    November 21, 2013

    The one place that I have seen gathering a lot of interest, especially in the United States, is South Amercia. The time zones line up better and there is a huge knowledge base there. Does anyone know of an concrete expamples?

  133. Tom Murphy
    November 21, 2013

    Wow…this time has really flown!  I have to run off soon, but want to thank Hailey for pulling this together and, especially, Ken and Simon for their clear, direct answers and facts.  It's really great to have a couple of experts to put this issue into perspective.   Go big brown!

  134. Hailey Lynne McKeefry
    November 21, 2013

    @Tom, glad you could stop by… We're going to have to draw to a close at the top of the hour, latest. so if you have any last minute questions, post them now!

  135. Tom Murphy
    November 21, 2013

    Thanks Ken.  SMBs are so much more nimble than big players, but big players are so much more powerful.  It's always fun to watch the give and take between them — as long as you're not the CSO of the smaller player. 

  136. Hailey Lynne McKeefry
    November 21, 2013

    @Scott, i don't know of electornics firms, but my husband's software company has a whole engineering team in costa rica. There also seems to be less of a language barrier.

  137. Ken Rankin
    November 21, 2013

    @JimC In the press. we've seen high profile companies make announcements around nearshoring. One of the objectives of our Change in the Chain study was to quantify the number of high tech companies that are planning to nearshore. Seeing the figure grow from 10% in 2010 to 27% in 2013 gives us a broader barometer of what's happening in the high tech industry.

  138. JimOReilly
    November 21, 2013

    Don't forget Europe has some paces with job problems. In fact, if anyone needs a consultant for an onshoring operation in the South-of-France, they can call me!:)

  139. Ashu001
    November 21, 2013

    @Sellis-At one Stage it was 30% onshore and 70% Offshore,But the Sharp increases in Labor Costs Overseas(as well as Utility Costs) pushed us to bring our Manufacturing more Onshore.

    Now we are reverse.

  140. Hailey Lynne McKeefry
    November 21, 2013

    @Jim, lots of talent in europe, for sure.

  141. Scott Ferguson
    November 21, 2013

    @Jim: I'm with you Jim.

  142. sellis
    November 21, 2013

    @tech, survey suggests that your experience is not unique. Well done!

  143. Ken Rankin
    November 21, 2013

    @Scott In our study, Latin America lead all regions as it relates to nearshoring (44%).

  144. JimOReilly
    November 21, 2013

    Scott, Greece is nice too!

  145. Scott Ferguson
    November 21, 2013

    @Hailey: There are also seems to be some shared experience there with Latin and South Amercia. You have Brazil as the main example, and a lot more here and there. You have a huge educated class with a desire to play on the world stage.

  146. Jamescon
    November 21, 2013

    Ken. That's a pretty significant jump in the level of interest. How does that change the way your own company makes its own plans, in hope of keeping pace with the potential change? Do you invest differently?

  147. Scott Ferguson
    November 21, 2013

    @ken: So in Latin America, what is part is going there? Development? Manufacturing? Resources?

  148. Susan_Nunziata
    November 21, 2013

    HI Gang…sorry I'm late to the party. How much of a role are mobile devices playing in changing the supply chain?

  149. Hailey Lynne McKeefry
    November 21, 2013

    Hi Snunyc, always glad to see you whenever you arrive!

     

  150. Ken Rankin
    November 21, 2013

    @JimC UPS has the global and regional expertise to help high-tech companies move aggressively into new and emerging markets. In an effort to assist our customers, we're always evaluating services and areas in the next hot market.

     

  151. Ashu001
    November 21, 2013

    @Ken-But don't you feel the Massive Economic Disaster in Venezuela,Argentina and Bolivia has messed up the Entire Onshoring Equation there?

    That fellow Maduro in particular ,Is  A Massive-Massive Joke!

  152. Susan_Nunziata
    November 21, 2013

    @Hailey: Thanks! 🙂

  153. Ken Rankin
    November 21, 2013

    @sunyc Mobile devices are certainly an enabler to the customer service equation. Our survey found that high tech companies are looking to differntiate themselves through customer service. 69% believe that better customer service performance drives improved sales.

  154. Hailey Lynne McKeefry
    November 21, 2013

    @Ken and Simon, i know there was a lot of the survey we didn't get to cover. Are there any results you wanted to point before we draw to a close?

  155. Ashu001
    November 21, 2013

    @Ken-Absolutely! Know your Customer or You won't have Business to Speak of!

  156. sellis
    November 21, 2013

    @Hailey, we haven't talked much about emerging markets

  157. sellis
    November 21, 2013

    Two-thirds of high-tech companies surveyed are in emerging markets or establishing a
    presence, and nearly 30% indicated that a key lesson in entering new markets is
    understanding how best to establish initial operations. Fascinating stuff!

  158. Scott Ferguson
    November 21, 2013

    @snunyc: What's amazing is that we're still just scratching the surface of what mobile devices can do, whether tablets or smartphones.

  159. sellis
    November 21, 2013

    @Hailey, even experienced companies need help.

  160. Hailey Lynne McKeefry
    November 21, 2013

    @all, quick commercial break: Look to the mid right and take a second to click on our most recent flash poll. It's right on topic for today: Does executive management in your organization understand the need for alignment between business and supply chain strategy?

  161. Ken Rankin
    November 21, 2013

    @Hailey 41% of the respondents expect high tech exports to grow faster over the next 2 years compared to 2013. We like the bullish outlook for exports….clearly the economy is slowly recovering and high tech companies have their eyes on the emerging markets prize.

  162. Hailey Lynne McKeefry
    November 21, 2013

    @Sellis, yes, and when it comes to these emerging markets, everyone has a learning curve.

  163. Scott Ferguson
    November 21, 2013

    When it comes to emerging markets, do we see companies wanting to more their whole operation, including HQ, to some of these countries? Is that a bridge too far?

  164. Hailey Lynne McKeefry
    November 21, 2013

    Looks like we've gone past time. I want to sincerly thank our guests for being here iwht us! We welcome any last words of course…

  165. Susan_Nunziata
    November 21, 2013

    @Ken: I can see where they'd play a huge role in customer service in terms of mobile intrfaces for customers to use. What about internally in the enterprise, terms of field force managment: managing drivers/routes, maximizing delivery, or in the warehouse/distribution centers?

  166. Hailey Lynne McKeefry
    November 21, 2013

    @EBNers, thanks so much for coming by and asking great questions… there's a lot to talk about–we'lll be diving deeper into thse topics in the near future. UPS folks blog for us regularly too so keep an eye out for thier contributions!

  167. Ken Rankin
    November 21, 2013

    @Scott High-tech companies are looking for best ways to enter these emerging markets, and our survey indicated 42% are looking for turn-key solution. UPS has the network & regulatory expertise to help our customers make their entry easier in these markets.

  168. sellis
    November 21, 2013

    Thanks for the energetic conversations everybody!

  169. Susan_Nunziata
    November 21, 2013

    Thanks all, looking forward to the next session.

  170. Ken Rankin
    November 21, 2013

    Really enjoyed the live chat – look forward to returning in the near future.

  171. JimOReilly
    November 21, 2013

    Thanks everyone, This is really an interesting story, and the implications for the economy are tremendous!

  172. Ken Rankin
    November 21, 2013

    You can learn more about UPS news by visiting http://www.pressroom.ups.com

  173. Scott Ferguson
    November 21, 2013

    @Ken: So maybe this was asked and answered, but what does UPS help out with? All aspects or IT, or just the logistics part or a combination depending on customer needs? What do people look for from you?

  174. Scott Ferguson
    November 21, 2013

    Thanks everyone. Lots of good insights here.

  175. Ken Rankin
    November 21, 2013

    @Scott UPS customizes the solution based on the customer's need. We have a full suite of solutions, including the world's largest footprint of field stocking locations – providing our customers with same day and next day capabilieis. We're the world's largest customs broker and have technology/IT visibility solutions to assist our customers. Our international portfolio reaches 220 countries.

  176. Scott Ferguson
    November 21, 2013

    @Ken: Thanks again.

  177. Hailey Lynne McKeefry
    November 21, 2013

    Thanks, all! See you next time.

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