First up is a candid cluster of observations from Supply Chain Digest, which puts the following question out there, warts and all:

Do North American companies, and their European counterparts, often fail to fully embrace the needs and insights of their supply chain and logistics peers in other parts of the globe?

Supply Chain Digest editor Dan Gilmore says "yes."

"I have attended global supply chain or logistics meetings at several companies this year, and found one recurring theme — many managers in global locations, especially in developing countries, feel like somewhat second class citizens," Gilmore says.

It's natural for companies to have a supply chain orientation that springs from their headquarters or primary market perspective, but if carried too far, that can really hurt global supply chain effectiveness and limit valuable input that can drive improvements.

The Supply Chain Digest piece then laundry lists a host of "common issues" companies face in this area, some of which include:

• Supply chain or logistics processes and "best practices" that are developed from an overly North American perspective. What works here is rarely optimal for Eastern Europe or South America, for example.

• Similar problems with supply chain software development: requirements are developed from a home country perspective, and the real needs of international units that will, ultimately, also receive the software are not well gathered or considered.

•Slow software roll-outs: international units receive new software deployments sometimes years after the home market, so that global supply chain technology is always out of sync.

Gene Tyndall, another Supply Chain Digest editor, has worked with hundreds of companies on global supply chain issues and, in so doing, has this to say:

[Companies] have become more "lean" and have reduced international travel for training, meetings, and team-building programs. Headquarters people have less opportunity to learn and understand other cultures and markets, and e-mails, conference calls and video conferences are inadequate for this purpose.

This apparent lack of communication could carry steep consequences, especially when considering a new Procuri study that says low-cost country sourcing will climb some 130 percent by 2010.

Conducted by Supply & Demand Chain Executive, the study Global Supply Management: Strategies for Success in the New World Economy, outlines the top global supply strategies and priorities cited by purchasing and supply chain executives for the next 36 months. It also reveals the global sourcing, supplier and technology management approaches used by top-performing supply management groups.

The study found companies that improved things like supplier development, collaboration and risk management capabilities, outperformed their peers in cost reductions by more than 50 percent and reported greater spend under management.

"Globalization clearly is challenging our readers to adopt innovative approaches, advanced skill sets and new technologies in response to increasing competitive pressures at home and abroad," said Andrew K. Reese, editor of Supply & Demand-Chain Executive. "This survey also reveals that leading enterprises are beginning to focus on socially and environmentally responsible business practices as a way of mitigating the risks that the global supply chain entails."

Logistics Management has also thrown its global supply chain hat into the ring recently, claiming that the "steady increase in outsourcing and off-shore manufacturing is having a significant effect on the way companies do business and prioritize supply chains in a post 9/11 world."

What does this all mean? Ann Grackin, CEO of consultancy ChainLink Research, says the result is that many companies have not found a "new way" when it comes to business processes.

"There are companies that outsource their manufacturing to Asia or somewhere else, but they have never actually followed their supply chain, which is a problem," Grackin told Logistics Management, going on to cite the recent Mattel toy recalls have served as a wake up call for companies to have a more "heightened interest" with what really goes on in global supply chains and what moves through ports.

Grackin believes that getting RFID technologies connected to other operating systems in the supply chain is one way in which security and end-to-end visibility could be enhanced, but to date Grackin said most companies have done a mediocre-to-poor job of doing this.

So why are a majority of manufacturers unwilling to get back in synch with the global nature of their supply chains?

Resources

Is Your Global Supply Chain Thinking too North American Centric?
Supply Chain Digest, Oct. 8, 2007

Low-Cost Country Sourcing to Climb 130 Percent Despite Growing Risks, Says New Study Sponsored by Procuri
Conducted by Supply & Demand Chain Executive, sponsored by Procuri, Oct. 9, 2007

Global Supply Management: Strategies for Success in the New World Economy
Procuri

Low-Cost Country Sourcing to Climb 130 Percent Despite Growing Risks, Says New Study Sponsored by Procuri
by Andrew K. Reese
Supply & Demand-Chain Executive via Procuri, Oct. 9, 2007

Connecting the Dots Is Key for Globalization and Supply Chain Security, Says Grackin
by Jeff Berman
Logistics Management, Oct. 9, 2007

Real World Research to Dramatically Improve Supply Chain Performance
Chain Link Research