“Sourcing Hub” Can Create More Efficient Supply Chains

Phil Ciciora writes for R&D Magazine that firms need to start developing stronger relationships with their suppliers’ suppliers. When you only deal with your direct suppliers and make no effort to understand what processes look like further down the chain, you are not maximizing your own supply chain. As the article notes, the suppliers of raw materials are often as large as Ford or GM but are just operating at the other end of the chain. Between such large entities, there is plenty of room to devise more efficient processes, even with all the intermediaries operating between them. That is why the article calls for the creation of a “sourcing hub” where these various entities can exchange information for the good of all firms involved. It is a case where everybody wins if properly thought out. For more information on the what and how of sourcing hubs, check out the original article: http://www.rdmag.com/news/2014/01/research-%E2%80%9Csourcing-hub%E2%80%9D-could-help-create-more-efficient-supply-chain

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