Bring home manufacturing
February 10, 2012 Leave a comment
I am glad that we are finally admitting that the rush to outsource to the far reaches of the globe was not particularly smart. While I agree that outsourcing makes sense if the suppliers are capable, and there is a considerable amount of labor involved in providing the service or making the product, I have always had the view that many decisions were “knee-jerk” reactions and not based on total costs.
My project team and I were recently in Gary Indiana, a town that has diminished in size in the last two years. The smokestacks of the nearby steel mill are active and there is production, and I wonder why we just can’t get back to business, forming close relationships with NAFTA suppliers and making products that are cost-effective. This philosophy can and should be applied to other industries.
Let’s bring back manufacturing based on the factors of efficient supply chain management, low total costs, product and process control, and better inventory management.
A procurement manager in 2000 told me ” We have been told by our President to outsource to China. He did not want to discuss it. We had no choice and it doesn’t make sense”
Hopefully, we are still making sound business decisions but I feel that we need to make better choices.
Value of Training and Human Resource Development
February 25, 2012 by G. Harris Leave a comment
A few weeks ago I read an article about how companies that invested in human resource development activities before the downturn in 2007-2009 fared much better over the last two-three years. This seems right.
Now comes the latest edition of Training Magazine. In this edition, it details the top 125 firms in terms of training resources being expended. Verizon turns out to be ranked Number 1 followed by Farmers Insurance. Verizon did not publicly disclose its budget but Farmers spent $121 Million.
Are we learning our lesson now? How can we rely on trying to hire experienced staff to be productive? Customers and markets change so rapidly now that a learning organization is critical.
Our business is supply chain management. Investment in training is almost non-existent. We are falling very far behind as a profession and are not growing the staff. In Federal Acquisition, there is a massive exodus due to retirement. The message is that the profession, both represented by private and public sector participants, is not venturing forth with new ideas and trained/competent staff.
Who else is concerned??
Filed under Commentary Tagged with Federal Acquisition. new ideas, Human Resources, procurement, Supply chain, training, Training Magazine, Verizon