Trade tariffs are especially problematic for heavy equipment manufacturers, as many rely heavily on cross-border supply chains. The tariffs could represent an increase in costs of production by 6% for agriculture and construction equipment and 7% for mining equipment, according to an IHS Markit/AEM report.
Many equipment manufacturers are not able to pass the rising cost of steel to their customers. But the costs have to be offset somehow, leading many manufacturers to look for fresh approaches to eliminate longstanding supply chain inefficiencies and increase productivity.
In her second installment on supply chain performance, Alexander Proudfoot Global Supply Chain Lead, Jaymie Forrest focuses on seven ways to improve working capital. They are as follows:
Supply chain improvements can generate up to 3.5% savings in total operating costs. Currently, many business leaders are focusing on major initiatives to improve theirs. We took a deeper look to evaluate the main trends on this topic. See the results in this infographic.
International Foundry Forum, Venice, September 2014
Alexander Proudfoot’s Head of Global Supply Chain, Jaymie Forrest was a keynote speaker at the International Foundry Forum’s annual trade summit on the 26-27th September 2014 in Venice, Italy.
