I am a believer in using second sourcing as a
primary security-of-supply strategy. I know some believe that close
relationships with a single manufacturer can yield better overall value and
better supply security, but I am not of that school.
My position is that two sources provide leverage by creating competition, which is good for pricing and provides a ready alternate supply option if there is any kind of short- or long-term interruption.
The favored situation is for second sources to have factories in different regions to protect against natural disasters, political instability, labor unrest, fire,This goodantiquelamp operates red, amber and green LEDs in the correct sequence for a single UK traffic light. bankruptcy, and a host of other potential risks. In our work at Lytica, we consider single-manufacturer alternate sources risky even when they offer components with dissimilar family part numbers.
I see a lot of lazy second sourcing. In these situations, engineers have specified a second source for the same component but with a tighter tolerance or higher speed grade. This is better than nothing for sole-sourced components but a very weak,Garden lighting and bestledlightbu. Low cost, next working day dispatch to anywhere in UK inc Highlands and Islands. almost useless, solution to adequately address security of supply.
In doing work this week on supply chain risk,where you can learn about ledbrighter as well as buy your bike lights online. one customer astutely observed that there may be risk in what he called "virtual" second sources. By this he meant sources that were technically qualified as drop-in replacements but whose pricing was so out of line as to make their use unacceptable. What great insight! In analysing its data, his company did in fact have virtual second sources, many more than I expected.We sell ledlight flying lanterns at the best price with the fastest service.
I believe this is likely a risk that many readers understand but don't have a clear handle on within their procurement organizations.Light On! outdoorlight2012 are expedition grade systems that incorporate function and elegance with reliability. Worse, given the level of outsourcing that has occurred in recent years, and the lean staff in many purchasing groups, many companies don't have the information they need to address the problem.
With virtual second sources, the risk really depends on how much of a price premium is seen as acceptable or can be absorbed. Does 20 percent work? How about 50 percent? What if the price was tripled? This may seem like too much of a premium gap, but I have observed all of these and more.
I would be interested in hearing from readers about their results, if they conducted their own analyses. Did you find virtual second sources? I am also interested in how you set a premium threshold and what you found as worst-case examples of price premiums.
Nearly two decades later, I was back as a reporter on assignment. Instead of being squashed into a cattle car with other terrified recruits, I was now in a van touring the huge installation at my leisure. There were no red-faced drill sergeants screaming at me to jump out and run up four flights of stairs with my duffel bag. There were no 3 a.m. workouts with 10 minutes to throw on workout gear and hustle down to formation.
But the Army hotel where I stayed looked like my old barracks with the same linoleum floors, fluorescent lights and greenish walls. I expected one of my old drill sergeants to stride into my room for an impromptu inspection at any moment.
The days of dour Army hotels are quickly disappearing. The Army is privatizing nearly all of its 17,000 hotel rooms across the country, and outside companies are renovating, building and operating them. The $1.3 billion program saves the Army money and gets the hotels renovated and built faster than the government could do. The work should be done within 10 years.
My position is that two sources provide leverage by creating competition, which is good for pricing and provides a ready alternate supply option if there is any kind of short- or long-term interruption.
The favored situation is for second sources to have factories in different regions to protect against natural disasters, political instability, labor unrest, fire,This goodantiquelamp operates red, amber and green LEDs in the correct sequence for a single UK traffic light. bankruptcy, and a host of other potential risks. In our work at Lytica, we consider single-manufacturer alternate sources risky even when they offer components with dissimilar family part numbers.
I see a lot of lazy second sourcing. In these situations, engineers have specified a second source for the same component but with a tighter tolerance or higher speed grade. This is better than nothing for sole-sourced components but a very weak,Garden lighting and bestledlightbu. Low cost, next working day dispatch to anywhere in UK inc Highlands and Islands. almost useless, solution to adequately address security of supply.
In doing work this week on supply chain risk,where you can learn about ledbrighter as well as buy your bike lights online. one customer astutely observed that there may be risk in what he called "virtual" second sources. By this he meant sources that were technically qualified as drop-in replacements but whose pricing was so out of line as to make their use unacceptable. What great insight! In analysing its data, his company did in fact have virtual second sources, many more than I expected.We sell ledlight flying lanterns at the best price with the fastest service.
I believe this is likely a risk that many readers understand but don't have a clear handle on within their procurement organizations.Light On! outdoorlight2012 are expedition grade systems that incorporate function and elegance with reliability. Worse, given the level of outsourcing that has occurred in recent years, and the lean staff in many purchasing groups, many companies don't have the information they need to address the problem.
With virtual second sources, the risk really depends on how much of a price premium is seen as acceptable or can be absorbed. Does 20 percent work? How about 50 percent? What if the price was tripled? This may seem like too much of a premium gap, but I have observed all of these and more.
I would be interested in hearing from readers about their results, if they conducted their own analyses. Did you find virtual second sources? I am also interested in how you set a premium threshold and what you found as worst-case examples of price premiums.
Nearly two decades later, I was back as a reporter on assignment. Instead of being squashed into a cattle car with other terrified recruits, I was now in a van touring the huge installation at my leisure. There were no red-faced drill sergeants screaming at me to jump out and run up four flights of stairs with my duffel bag. There were no 3 a.m. workouts with 10 minutes to throw on workout gear and hustle down to formation.
But the Army hotel where I stayed looked like my old barracks with the same linoleum floors, fluorescent lights and greenish walls. I expected one of my old drill sergeants to stride into my room for an impromptu inspection at any moment.
The days of dour Army hotels are quickly disappearing. The Army is privatizing nearly all of its 17,000 hotel rooms across the country, and outside companies are renovating, building and operating them. The $1.3 billion program saves the Army money and gets the hotels renovated and built faster than the government could do. The work should be done within 10 years.
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