Spending lag prompts supply chain management makeovers

The precipitous drop in consumer spending that has been cited as a major cause of the ongoing economic recession now has manufacturers scrambling to adjust supply chain management strategies. In fact, lower consumer spending took the top position on the list of supply chain risks in a recent survey conducted by Boston-based AMR Research.

05/01/2009


The precipitous drop in consumer spending that has been cited as a major cause of the ongoing economic recession now has manufacturers scrambling to adjust supply chain management strategies.

In fact, lower consumer spending took the top position on the list of supply chain risks in a recent survey conducted by Boston-based AMR Research.

"As retailers cut inventories in the face of softening demand, this risk is cascading up consumer and industrial supply chains," Noha Tohamy, an AMR Research VP said in a report summarizing the survey's findings. "Companies like Cisco and Procter & Gamble are grappling with tactical questions, like where to cut and position inventory, and strategic initiatives, like where to source and how to rationalize their supplier bases to remain healthy during the downturn and be well-positioned for the next recovery cycle."

Tohamy said AMR conducts this risk assessment survey on a quarterly basis, and it's clear from the results of the most recent canvass—covering the first quarter of 2009—that the economic downturn is dominating the thinking of supply chain executives. "Lower consumer demand is dominating the list of risks this quarter, with 37 percent of respondents identifying it as No. 1," Tohamy said. "Additionally, only 15 percent expect this risk to decrease by next year."

Product quality failures placed second on risk list, with 35 percent of respondents identifying it as their second top concern.

Volatile energy and commodity prices—which consistently took first and second place honors last year—placed third and sixth, respectively, on the most recent list.

The potential of having intellectual property stolen was fourth-highest risk factor cited in the latest survey. This fear—coupled with concern over product quality—appears to be causing manufacturers to rethink outsourcing and offshoring strategies.

For instance, Tohamy said, China—which continues to be plagued by both recall and IP protection problems—is now getting more competition from India as a manufacturing center, and more U.S.-based manufacturers are looking at nearshoring.





Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
August 2018
Augmented reality and virtual reality education, autotuning PID control, cybersecurity advice, educating engineers
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
August 2018
Augmented reality and virtual reality education, autotuning PID control, cybersecurity advice, educating engineers
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Engineers' Choice Awards
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by Control Engineering subscribers.
System Integrator Giants
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
How to Maximize Factory Automation Efficiency with Low Cost Machine Vision
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Wireless Reliability in Harsh Environments
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
September 2018
Optimize controls via cloud software, ladder logic simulation, industrial wireless best practices
August 2018
Augmented reality and virtual reality education, autotuning PID control, cybersecurity advice, educating engineers
July 2018
Ladder logic best practices and object-oriented programming, safety instrumented systems, enclosure design issues and challenges, process control advice
Edge Computing
This article collection contains several articles on how today's technologies heap benefits onto an edge-computing architecture such as faster computing, better networking, more memory, smarter analytics, cloud-based intelligence, and lower costs.
Data Center Design
Data centers, data closets, edge and cloud computing, co-location facilities, and similar topics are among the fastest-changing in the industry.
PLCs
Programmable logic controllers (PLCs) represent the logic (decision) part of the control loop of sense, decide, and actuate. Featured articles in this digital report compare PLCs and programmable automation controllers (PACs), industrial PCs, and robotic controllers.
SIDB

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, progressive cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
John O. Ayuk, PE, CFSE, PMP, CAP
Automation Engineer; Wood Group
Doug Baker
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me