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- Jan. 22, 2016 -


Supply Chain Graphic of the Week: The Power of Highly Integrating Global Sourcing and Logistics


To Achieve the Best Results and Lowest Total Landed Cost, an Iterative, Collaborative Approach is Key


By SCDigest Editorial Staff



SCDigest recently released a new benchmark report on the global sourcing and trade management practices and trends, - and it is a fine piece of work, if we do say so ourselves. The report, based on detailed survey results from 200 supply chain professionals, is available here: Global Sourcing & Trade Management 2016 Benchmark Report

In addition to lots of great survey data, the analysis section of the report covers a number of key trends in this area.


One of those trends had to do with the major opportunities many companies have in better integrating their global sourcing and logistics processes.


That opportunity is illustrated in a graphic below taken from the report, which depicts the iterative nature of the analysis and decisions across sourcing and logistics that can lead to the best sourcing choice and lowest total landed cost.


The Power of Integrated Global Sourcing and Logistics



The full report goes through this model in more detail, but the reality is that too often there is not enough collaboration and joint analysis in this area. For example, perhaps a sourcing decision is made on its own ased on unit costs and then handed off to logistics to make the move as cheaply as possible, without looking at total landed cost and other factors together from the start. While most companies today probably do some level of total landed cost analysis, there is often room for additional collaboration to inform the best decision.


Of course, areas like product design also play a key factor in logistics costs, whether it be in the amount of packaging used or even how a product might be partially disassembed for lower shipping costs from say an Asian manufacturer.


SCDigest thanks Global Trade Management soluton provider Amber Road for making the research possible.

We encourage you to take a look at the highly graphical, easy to read study, which again you will find here: Global Sourcing & Trade Management 2016 Benchmark Report


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