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Entries in supply chains (2)

10:02AM

WPR Feature: Managing Global Supply Chains a Key U.S. Advantage

co-authored with Stephen F. DeAngelis

While many in the West fret over the challenge of "rebalancing" the global economy after the recent global financial crisis, several trends suggest that the field of supply chain management could offer a key advantage for an America eager to double its exports by 2014. On the surface, supply chain management might not sound too sexy, but understand this: In today's globalization, neither companies nor countries compete -- supply chains do. Companies like Wal-Mart have known this for some time. Thus, positioning America to be the world's pre-eminent provider of secure, transparent and efficient supply chains will ensure that our economy masters globalization's competitive landscape in the fullest sense. 

Read the entire column at World Politics Review.

See also Steve's broader post on transforming global supply chains.

12:04AM

Wal-Mart plans on capturing its suppliers' supply chains!

Bloomberg story by way of Thomas Frazel.

Gist:

Wal-Mart Stores Inc., the world's largest retailer, is seeking to take over U.S. transportation services from suppliers in an effort to reduce the cost of hauling goods.

The company is contacting all manufacturers that provide products to its more than 4,000 U.S. stores and Sam's Club membership warehouse clubs, said Kelly Abney, Wal-Mart's vice president of corporate transportation in charge of the project. The goal is to take over deliveries in instances where Wal-Mart can do the same job for less and use those savings to reduce prices in stores, he said.

I referenced this in last week's WPR column on the myth of "deglobalization."

This is some serious ambition toward tightening up supply chains.  Brutal to the manufacturers, who now lose economies of scale in their remaining shipments to other retailers--unless they follow suit.