| The current U.S. business environment continues | | | | slightly in 2010. As for non-U.S.-based vendors, 66 |
| prompting companies to control costs, and increase | | | | percent looked toward China as the low-cost option |
| revenue through their procurement and sourcing | | | | of choice. Outside of that overwhelming favorite, 14 |
| functions. What this means is that businesses are | | | | percent chose Mexico, 5 percent chose India, and the |
| cutting costs along sourcing avenues, and thus | | | | remaining 15 percent was spread out over small |
| restricting supply chain collaboration efforts. | | | | countries throughout the world. |
| The Global Survey of Supply Chain Progress published | | | | Recent failures regarding supply chain efforts have |
| last year indicated that more than 75 percent of U.S. | | | | taught businesses a great many lessons. Companies |
| respondents' companies were rethinking their sourcing | | | | are paying greater attention to them now than they |
| points. Moreover, 57 percent of them said that the | | | | were even several years ago, and they also have |
| companies had plans in place to either change buying | | | | more sophisticated methodologies of analyzing root |
| habits or sourcing points. | | | | causes. In other words, they are no longer focusing |
| As of 2010, there have been no indicators suggesting | | | | on oft-misleading symptoms. Still, risk management |
| that the business emphasis is going to shift back off | | | | across supply chains must improve. However, |
| cost reduction. Therefore, businesses are likely to | | | | evidence suggests that businesses have learned from |
| continue tightening their supply chain sourcing belts as | | | | their mistakes, are doing a better job of attaining |
| the economy moves into the second half of the | | | | information, and are leveraging it more effectively. |
| year. One positive is that according to the MFG | | | | It is vital that companies have a better understanding |
| Watch Survey, 64 percent of industrial professionals | | | | of potential supply chain risk moving forward, and |
| surveyed said they preferred North American | | | | that they have more sophisticated contingency plans |
| manufacturers. Of the remaining 36 percent, 19 | | | | in place moving into the next decade. Despite |
| percent favored China while 7 percent favored | | | | economic pressures forcing companies to cut costs |
| supply chain collaboration in Europe. The survey | | | | along these chains, global commerce ties remain |
| divided the remaining 10 percent between Africa, | | | | strong, even in light of the recent worldwide |
| South America, and other countries. | | | | downturn. The key for the economy moving forward |
| According to the Prime Advantage Group Outlook | | | | is for a strong focus on and vigilant monitoring of the |
| Survey, 80 percent of U.S.-based industrial | | | | global sourcing trends that were in place prior to the |
| manufacturers expected direct purchase levels from | | | | recession. |
| U.S.-based based vendors to remain constant or rise | | | | |