newsworthy
Buffeted by rising transportation costs and increasing customer demands for fast delivery, high-tech executives are
pulling back from a long-held strategy of offshoring their
supply chains, according to a survey released last month by
consultancy IDC Manufacturing Insights.
Polled about their plans for building supply chain networks to support manufacturing, 47 percent said they
continue to pursue offshoring strategies to reduce labor
costs. However, a growing portion of those executives are
taking the opposite path, positioning their supply chains
closer to local resources and markets to cut transportation
and inventory carrying costs, reduce transit times, protect
intellectual property rights, and improve customer service.
About 45 percent of respondents are “right-shoring”—
optimizing the supply chain for cost benefits—while anoth-
er 35 percent said they practice “near-shoring,” which
entails moving manufacturing or assembly closer to the
location of demand, according to the fifth annual “Change
in the (Supply) Chain” survey, which was commissioned by
Atlanta-based shipping and logistics giant UPS Inc.
The popularity of near-shoring has grown by 25 percent-
age points since 2010 as corporate leaders move to build
more nimble supply chains in an age of burgeoning high-
tech exports and global markets, according to the survey.
IDC researchers polled 516 high-tech executives and senior
high-tech supply chain professionals in North America,
Europe, the Asia-Pacific region, and Latin America.
Virtually all respondents expressed optimism about the
growth outlook for high-tech U.S. exports, with 46 percent
predicting growth would continue at its current pace, or
even faster, through 2017. Penetration of emerging markets
is becoming more prevalent, with 71 percent saying they sell
products in China, 45 percent in India, and 42 percent in
Brazil.
High-tech leaders seek to cut costs by shortening supply chains
alliances
The Kion Group has signed an agreement with the
Belgian automation specialist Egemin Group to purchase
its handling automation division for approximately $81
million. … Conveyor Handling Co.’s new LED industrial
lighting division, Facility Lighting Solutions, has part-
nered with MaxGreen to provide a line of industrial and
commercial LED lights. … Tüpras A.S. (Turkish Petroleum
Refineries Co.) has gone live with Amber Road’s auto-
mated restricted-party screening solution. … National
DCP LLC, a $2 billion supply chain management cooper-
ative serving the franchisees of Dunkin’ Brands, has initi-
ated its rollout of Manhattan Associates’ Transportation
Management and Warehouse Management solutions
as part of the company’s Project Freshstart business
strategy. In addition, apparel company E. Land World
Ltd. and fashion brand Paul Smith are implement-
ing Manhattan’s Supply Chain Commerce Solutions.
Manhattan is also working with retailer Mothercare
plc to support its multichannel retailing effort. …
Bastian Solutions has become a value-added reseller of
Jervis B. Webb Co.’s SmartCart automatic guided carts.
… Jaxport in Jacksonville, Fla., has begun service as
Volkswagen’s Southeastern U.S. port and distribution
hub. …Mehadrin Dairy has selected HighJump’s route
accounting system and mobile delivery application to
serve as the IT backbone of its direct store delivery oper-
ations. … Crown Equipment Corp. and Ryder Material
Handling, part of Crown’s distribution network, have
introduced Crown’s Demonstrated Performance Service
Technician Training Program in Canada. … Labelmaster,
a specialist in solutions for hazard-
ous material transport compliance,
has partnered with the American
Coatings Association to offer
Hazardous Materials Identification
System (HMIS) labels. … Worley
& McCullough, a grower-shipper
of potatoes in Colorado’s San Luis
Valley, has completed its conversion
from standard wooden pallets to
iGPS Logistics’ plastic pallets. In addition, Gerawan
Farming, a stone fruit company, has renewed its agree-
ment to use iGPS plastic pallets for shipping its Prima
Brand of produce. … Nebraska Transport Co. (NTC), a
regional less-than-truckload carrier, has selected DDC
FPO as its business process management partner. … NSK
Europe, a manufacturer of bearings, automotive com-
ponents, and steering systems, has enhanced its supply
chain performance by using the cloud-based Descartes
Transportation Manager IS solution. … Maersk Line
North America has selected WAM Technologies LLC to
provide machine-to-machine technology for remote
tracking, monitoring, and inspection of its refrigerat-
ed container generator sets. … Strauss Paper Co. has
selected Infor as its customer relationship management
system provider.
LABELMASTER
