The December 2009 annual survey of the Industrial Supply Management (ISM) identified “supply chain optimization” as a major priority for purchasing managers for 2010. The manufacturing purchasing executives identified a number of strategies including:
Vendor managed inventory (VMI) to improve inventory/asset management
- Supplier consolidation
- Improved information systems
- Lean manufacturing
- Overall Cost reduction
The respondents are positive about 2010 business conditions in most segments of US manufacturing with the exception of capital spending.
During the recession, some organizations “in-sourced” some of their activities to retain staff members. As business conditions improve, out sourcing will return as a viable cost reduction strategy.
