Procurement: Page 61
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Deep Dive
What procurement managers should expect from a 'bullwhip on crack'
Slight variations in demand at the retail level grow larger until they reach the manufacturer. This bullwhip effect is playing out in real-time in the COVID-19 pandemic.
By Matt Leonard • March 26, 2020 -
India, Bangladesh extend lockdowns, factories remain closed
The Indian government extended its lockdown order Tuesday, which was initially followed by multiple factories announcing closures. Factories in Bangladesh face a cascade of canceled orders.
By Matt Leonard • Updated April 14, 2020 -
Explore the Trendline➔
Sean Gallup via Getty ImagesTrendlineInventory Management
Read how retailers and brand manufactures are rethinking inventory management.
By Supply Chain Dive staff -
U.S. Centers for Disease Control. "CDC 2019-Novel Coronavirus (2019-nCoV) test kit". Retrieved from https://www.cdc.gov/coronavirus/2019-ncov/about/testing.html.
How health systems are responding as COVID-19 squeezes the medical supply chain
Procurement of supplies will become more difficult if cases surge and federal stockpiles don't trickle down to the state level quickly enough.
By Deborah Abrams Kaplan • March 25, 2020 -
jotoler. (2016). [Photograph]. Retrieved from https://pixabay.com/photos/worker-industry-man-manufacturing-4395772/.
IHS Markit: March Flash PMI posts steepest decline since 2009
Manufacturers reported the first contraction in new business and orders in over a decade amid sharp declines in supplier capacity and customer demand due to the COVID-19 outbreak.
By Morgan Forde • March 25, 2020 -
Column
Today's supply chains are too lean
The COVID-19 pandemic has highlighted the dangers of just-in-time principles and lean inventories.
By Rich Weissman • March 24, 2020 -
Food manufacturing will stay healthy during coronavirus, trade groups say
Leaders of the Consumer Brands Association and the American Bakers Association say their members are rising to the challenge and see no shortages of the basics.
By Megan Poinski • March 24, 2020 -
McKinsey estimates stock-outs for automotive, retail supply chains by end of March, April
Just-in-time and traditionally low-inventory supply chains could be in danger in the coming weeks as supply out of China continues to be slow and U.S. and EU factories begin to postpone production.
By Morgan Forde • March 19, 2020 -
US won't suspend China tariffs during coronavirus outbreak
The tariffs present a risk and additional cost to medical supply chains as the need for critical supplies becomes urgent.
By Shefali Kapadia • March 19, 2020 -
Redundancies, hurricane prep keeping healthcare company Baxter in stock despite COVID-19
The company is constantly monitoring the supply and the demand side to thoroughly understand supplier capacity and prevent hoarding by hospitals, said CEO Joe Almeida.
By Emma Cosgrove • March 19, 2020 -
European, US manufacturers shut down as China comes back online
Factory shutdowns will quickly ripple through the supply chain to impact the suppliers, logistics partners and other businesses that work with manufacturers on a regular basis.
By Matt Leonard • Updated March 24, 2020 -
How a lab facing coronavirus supply shortage signals nationwide struggles
The Western New York regional public health lab is a microcosm of the insufficient swab and reagent stocks labs face as they attempt to confirm COVID-19 cases and gauge the scope of the outbreak.
By Greg Slabodkin • March 18, 2020 -
53% of US manufacturers expect operational impact from coronavirus: survey
Operational changes include the implementation of business continuity plans involving workplace sanitation, limiting in-person interaction and managing shifts to account for an uptick in worker absences, according to The National Association of Manufacturers.
By Matt Leonard • March 17, 2020 -
PwC: Coronavirus is moving supply chain into the board room
In a survey conducted last week, 90% of 50 the CFOs said if the coronavirus outbreak disappeared today, it would take their companies three months or less to regain normal function.
By Emma Cosgrove • March 17, 2020 -
National Institute of Allergy and Infectious Diseases. (2020). "Novel coronavirus SARS-CoV-2" [Microscope image]. Retrieved from https://www.flickr.com/photos/nihgov/49535193876/in/album-72157713108522106/.
CDC chief: Certain materials critical to coronavirus tests 'now are in short supply'
Separately, the government announced funding for development of COVID-19 diagnostic tests meant to detect the pathogen in about an hour.
By Greg Slabodkin • March 13, 2020 -
Making the most of the cash-to-cash cycle
Procurement's insights can be valuable when it comes time to arrange and review supplier contracts, but only if the team doesn't sit back and let finance handle things.
By Amanda Loudin • March 12, 2020 -
62% of procurement, supply chain managers experiencing supplier delays from China
Companies that shifted sourcing to countries outside of China, such as Vietnam, could be better positioned to weather coronavirus-related disruptions, according to the Institute for Supply Management.
By Morgan Forde • March 12, 2020 -
Airfreight rates from China to US climb 27% in 2 weeks as demand surpasses capacity
Flight cancellations out of China have removed 5,100 tons of capacity from China per day on average, which has led to a 36% year-over-year decline in total airfreight capacity out of mainland China.
By Matt Leonard • March 12, 2020 -
U.S. Centers for Disease Control. "CDC 2019-Novel Coronavirus (2019-nCoV) test kit". Retrieved from https://www.cdc.gov/coronavirus/2019-ncov/about/testing.html.
FDA chief warns of supply 'pressure' on reagents for coronavirus tests
Qiagen, a major supplier of RNA extraction kits, confirmed to MedTech Dive Thursday that "extraordinary demand for coronavirus testing workflows" is challenging the company's capacity.
By Greg Slabodkin • March 12, 2020 -
"View from The Pinnacle@Duxton to one of the Ports, Singapore" by Zairon is licensed under CC BY-SA 4.0
3 ways to manage coronavirus risk in the supply chain
Even as China operations come back online, the risk to global supply chains is far from over, panelists said at Modex as they offered tips to mitigate challenges.
By Shefali Kapadia • March 11, 2020 -
44% of supply chain pros have no plan for China supply disruption
There are signs companies are struggling with visibility and shipping out of China, but there is no indication this has resulted in U.S. factories shuttering, even temporarily.
By Matt Leonard • March 11, 2020 -
Costco: It could take weeks to reach routine supply chain operations
The COVID-19 outbreak is affecting multiple parts of Costco's supply chain, not just its procurement and in-store operations.
By Matt Leonard • March 6, 2020 -
Column
4 ways to boost cross-functional sourcing team effectiveness
The collective strength of a team from roles in finance, manufacturing, planning and logistics expands the procurement department's range of expertise.
By Rich Weissman • March 5, 2020 -
Nike, retail groups respond to report documenting forced Uighur labor in supply chains
A joint statement from four leading retail industry groups called on the U.S. government to form a multi-stakeholder working group to find solutions.
By Emma Cosgrove • Updated March 12, 2020 -
H&M pilots supply chain service Treadler to improve industry sustainability
Treadler aims to guide smaller clothing brands through sustainable product development, sourcing, production and logistics.
By S.L. Fuller • March 4, 2020 -
US manufacturing hit by coronavirus but maintains growth
Although the purchasing managers index found the manufacturing sector just within growth territory, coronavirus-related complications are causing supply delays and longer lead times.
By Morgan Forde • March 3, 2020