Ken, your engine is revving a lot of RPMs!

How Lytica became a unique analytics company: Part 20 This blog’s title is an email quote from a customer trying the extreme shortages mitigation approaches outlined in my last blog. He was surprised by the number of alternatives we tabled for him. This individual is one of the best supply chain professionals I know. He works for one of our clients in the Bay area and has worked for a number of industry leading telecom and computer companies. I can guarantee...

Sustainability is a Must-Have not a Nice-To-Have

Sustainability is not a buzzword anymore, however, the concept of sustainability remains abstract and complex if it lacks context to make it relatable to people’s day-to-day experience. Though everyone may have different understandings and interpretations of sustainability, we all know that the goal is to minimize negative environmental impact resulting from human activities. This explains why food & beverage, pharmaceutical and apparel industries are taking a lead in sustainability and supply chain transparency. For electronic products, sustainability will never come...

Manufacturing Sector- The Growth Engine of the Economy

GDP dynamics - An important factor for developing supply chain strategies Manufacturing sector has been the growth engine of the global economy for the better part of the last two centuries. The transition from an agrarian to manufacturing economy is still an important indicator of growth, prosperity and rise in living standards for a country. For developing nations, improving and investing in the manufacturing sector continue to be a strategic focus area. Even for a country like India, which has a...

Risk and Uncertainty

 Is risk a synonym for uncertainty? The thesaurus in Microsoft Word suggests that it is and a Google search confirms it however, when thinking about managing supply chains, there are a different set of actions for risk than those taken to address uncertainty.  The primary supply chain actions to reduce risk involve alternate sourcing, inventory and supplier selection criteria whereas actions to remove uncertainty involve data.  If they really are the same, the risk reduction approach should be the same. Paraphrasing...

 Supplier Customer Diversity Sensitivity and Resilience

In my last blog, Supply Chain Crash Test, I asked if your supply chain could withstand a tsunami like event that might wipe out many component suppliers who serve supply chains of the OEM or EMS companies that would cause it. I asked you to postulate what would happen if Apple had experienced the Samsung battery problem; this would be a tsunami … do you know the impact it would have on your supply chain? In the blog, I stated...

“We supply the science – you supply the art”

In October, I attended the i2030 National Manufacturing Summit in Ottawa Canada, co-hosted by industry groups the CME (Canadian Manufacturers and Exporters) and the CMC (Canadian Manufacturing Coalition). The agenda was geared towards manufacturers and, considering our customers worldwide are comprised of OEM, EMS providers and ODMs, it was certainly topical and relevant to Lytica. Many of the discussion threads touched on the 4th industrial revolution or Industry 4.0 for short.  For the purposes of a refresher and setting the context,  the...

Supply Chain Crash Test

Automobile manufacturers are constantly driving their cars into crash structures to see how they stand up. When was the last time that you crash tested your supply chain? What would have happened to your supply chain if Apple had experienced the Samsung battery problem? A year ago no one could have predicted that the number 2 smartphone company would be in disaster recovery mode due to safety issues with their phones. Obviously their sales will be impacted from a loss...

Professor Rosling is an interesting fellow

Professor Hans Rosling is an interesting fellow. In his documentary Don't Panic: How to End Poverty in 15 Years, which details the United Nations’ plan to end poverty in 15 years, he describes two paths to economic prosperity while improving the human condition. These paths have great importance to the supply chains of the future. The first path he describes is one that, historically, has been taken by the USA, Great Britain and many countries guided by the World Bank....

Predicting Supplier Failure

The problem of identifying suppliers with a high risk of failure is becoming more serious as talks of interest rate hikes and free trade agreement dissolution become more common. While this blog considers suppliers in an electronics supply chain, the risks and mitigations described apply more broadly. Most companies have strategies and indicators for dealing with short term supply disruptions related to manufacturing issues but the prediction of catastrophic supplier failure is a less safeguarded space. How does one...

Catastrophic Risk Prevention

Analyze financial health to prevent catastrophic risk in your supply chain With increasing occurrences of disturbing events, such as companies going bankrupt, how to predict and prevent the catastrophic risk becomes one of the most important considerations of executives and managers. Such events could adversely impact production and order fulfillment, resulting in financial loss as well as brand damage. Considering data collectability, accuracy and comparability, data from financial statements is applied to evaluate and predict the catastrophic risk. Financial Risk Evaluation Measures...