Aligning distributing, manufacturing jobs
January 17, 2012
Despite the fact that coordination between the two processes is vital to keeping operations on schedule and maintaining smooth supply chains, manufacturing and distributing departments often have difficulty working together.
Research firm Technomic recently partnered with the Association of Foodservice Distributor Representatives to develop a program that facilitates networking, communications and resource-sharing between foodservice manufacturers and distributors. The groups said the need for the project was apparent after a November conference, when "it became clear that certain 'disconnects' exist in both supplier/distributor communication and in DSR [demand single repository] support programs."
Yet the companies said there is still hope, since "these disconnects are ones that can be overcome, often through low-cost modifications to training, information sharing, deployment and/or methods of communication."
Bob Goldin, executive vice president of Technomic, commented that because DSRs represented such a vital role in the channel, it is necessary that manufacturers work more closely with them.
Improved visibility in the supply chain is also something that can help companies - in the food service, retail or other industries - build delivery and procurement systems that are more efficient, effective and simple, while also being less costly.
Procurement Leaders reports that having visibility can be an especially important aspect of supply management, as sports brand Nike found after workers at one of its contractor factories sued for unpaid overtime. The magazine points out that the company may want to review operations at its other facilities, as it has 43 contract factories in Indonesia and many others scattered across Asia.
Labor is becoming more organized in countries that for decades were the base of manufacturing for Western companies. With that, businesses will need to make their chains more transparent and verify that contractors' employees are being well treated, while also closely monitoring their expenses.
"Internal indicators present signs of continued expansion in the important and often overlooked interior of China," Brad Fueling, CEO of Kong and Allan Consulting in Shanghai, told the source. "This combined with a new decade of policy and standards setting could potentially influence further cost increases, and may contribute, in the short-term, to social unease."
With more workers in Asia launching strikes to protest poor conditions, companies will also need to develop strategies that minimize risk (such as partnering with organizations that mistreat employees) and plan alternatives in the event of supply disruptions.
