Global sourcing caveat: find a reliable partner

U.S. manufacturers and service companies are expected to have worldwide supply chains now, said leadings industry analysts.

That said, how do they maintain value continuity in today’s volatile global marketplace? That was the leading question posed by Steve Palagyi, Principal, PwC’s PRTM Management Consulting at last week’s Supply Chain Council’s Executive Summit.

“Given the fact that there are many analysts who claim to have the answer, shippers have to careful when choosing a resident expert,” observed Palagyi.

“I agree,” said Mark Gamber, director of operations, Cameron – Valves & Measurement.” The energy business is especially unpredictable, and having a long partnership with someone you can trust is invaluable.”

Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries. With over 300 locations around the world, it can leveraging its global manufacturing, engineering and sales and service network, said Gamber.

“Cameron works with drilling contractors, oil and gas producers, pipeline operators, refiners and other process owners to control, direct, adjust, process, measure and compress pressures and flows,” he explained.

But being big is not the only advantage, Gamber said. His customers want to know what his suppliers are doing and how a partnership can be sustained.

“And that takes imagination,” he said. “We try to embed our own people within those sub-systems to gather more intelligence and understanding of how they function.”

Paul Peck, President and CEO, Global Supply Chain Solutions, LLC, applauded that idea, noting that “spot consulting” does not always yield transactional information.

“We have a lot of supply chain experts in China, for example, who can investigate a second- or third-tier supplier and tell us if they have a viable business model. If the information is reliable, we can use that person for other similar projects. It’s a partnership we can build upon.”

Peck said that the supply chain for raw circuit boards might seem anchored to a specific region in China, but that some elements come “from elsewhere.”

“And that’s when you need a partner in-country,” he said. “Does that does not mean one must fully employ that partner, however. Sometimes it is better to rent than own.”

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