Minimizing Tariff Impact Through Global Supply Chain Design

The United States’ new tariffs on China, Mexico, Europe, and counter acts from elsewhere around the world have been a concerning topic in the business world. Since companies have built increasingly complex international supply chains, the impact of these tariffs is much broader this time. However, these tariffs can also be used as a competitive advantage. We need to constantly redesign the supply chain ahead of competition to benefit from the impacts.
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Why Does Chinese New Year Affect the Supply Chain?

Chinese New Year (CNY) is an important time of year for many people in China. Much like the Christmas holiday in the U.S., it is a time for celebration and family, though on a larger scale. It’s the largest Chinese holiday of the year, and business calendars in the country reflect that.

If you have ever outsourced product from China or utilized a supply chain that extends overseas, you have likely at least heard of the impact the holiday can have on the manufacturing industry. But for those that have ever wondered why the impact occurs, we’d like to give you a bit of insight into Chinese New Year.
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Just-in-Time supply chain model

When JIT Meets Murphy’s Law

In the contract manufacturing business, supply chain professionals know that an interruption in the supply chain will cause turmoil, and can even shut down the ecosystem of a sub-contractor network. This may lead to a major surge in overhead costs when re-establishing the system, and can also cause delays and lost revenue. They also know that the world is full of uncertainties, which are governed by Murphy’s Law (in short, Murphy’s Law can be explained as “what can go wrong, will go wrong”). So what does this have to do with the Just-In-Time (JIT) business model?

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