| Cost and Pricing Analysis |
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All industries experience price and cost fluctuations, and industries in transition often experience volatility in capacity and lead times that require forward strategic planning. Unfortunately, the data that is readily available for purchase is of unacceptably low-quality to support strategic long-term decisions related to capital investment, market entry, and mergers and acquisitions. Boston Strategies International’s Industry Research series offers proprietary models and frameworks built and maintained by our world-class economists, and blends that quantitative information with primary research to produce information that is difficult to gather and most often not available anywhere, including through major subscription research firms or other consulting firms.
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2010 Rate Outlook Update
Nobody is predicting any dramatic post-recession bounce as the national economy slowly emerges from its fitful and uneasy hibernation. On the freight transportation front, carriers in most sectors are still plagued with overcapacity, hoping that consumers will shake off their credit concerns and begin to register the kind of demands for goods that translate into shipping volume growth.
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W-Shaped Economy or Long Wave?
The recession appears to be over, and economists are debating whether the reco-very will be “U- shaped” or “W-shaped.” A “U-shaped” recovery is relatively straight¬forward- the recession leads to growth and the growth continues. A “W-shaped” recovery means that we experience a false recovery that is followed by a second reces¬sion. This is possible, even likely, because of the massive debt incurred by govern¬ments worldwide as they bailed out banks and ailing manufacturing companies. In a “W-shaped” recovery, bloated public debt and sagging exchange rates would force governments to raise taxes to balance their budgets and support high interest rates to attract foreign capital, both of which would hinder economic recovery.
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| Your Supply Chain Costs Will Increase by 5% in 2010 There is more good news than bad for the economy, and that will translate to a 5% increase in supply chain costs for shippers in 2010. Volume and rates declined so much in 2008 and 2009 that the carriers’ and service providers’ only survival strategy was to remove unprecedented amounts of capacity - which for some companies meant equipment and people and for others meant selling or liquidating their businesses. But now the supply cuts are meeting or exceeding the drop in demand, so as demand picks up rates will rise.
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| Global Economic Trends Supply chain activity will rebound as the economy does. Is the bounce back sustainable? What are the scenarios for economic ups and downs over the coming years? What will your supply chain costs be in 2010? This simplified excerpt from Boston Strategies International's keynote presentation to the Health and Personal Care Logistics Conference in Florida answers these questions.
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| Your Supply Chain Costs are Down by 12% The recession should have lowered your supply chain costs by 12.2% by now, and if your company is like most, that should lower your corporate cost structure by 5.9%, after taking into account inventory reductions at their cash equivalent value. To make sure you capture the savings that your competitors are reaping, it is imperative to deploy world-class rationalization programs.
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| The Bullwhip Effect in Global Trade - This is One Wild Bull The financial sector is worse condition than it was in the 1930s. Nine percent of US bank loans are likely to fail - more than failed in the Great Depression, and this will take two or three years to rectify and result in a 7.5% loss of total asset value. What does this all mean for supply chain managers?
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| Mill Rolls Cost and Pricing Analysis
As demand for industrial metals soars, rolls for steel and aluminum rolling mills are in increasingly short supply. This study quantifies and forecasts capacity, lead time, and prices for mill rolls from 2008 to 2014, providing forecasts of capacity, lead time, cost structures, and prices by region and type of mill roll. It also analyzes capacity utilization and benchmarks capacity utilization and capacity reservation.
20 pages, 12 charts, and 7 tables, ©2008.
Price: $800
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| Large-Bore Antifriction Bearings Cost and Pricing Analysis
The lead time for large bore bearings has become so long that purchasing managers are scrambling for a solution. This study quantifies and forecasts capacity, lead time, and prices for large bore bearings from 2008 to 2014, providing forecasts of capacity, lead time, cost structures and prices by region and bearing size. It also analyzes capacity utilization, providing detailed listings of new capacity additions, and it benchmarks capacity utilization and capacity reservation practices.
39 pages, 13 charts, 1 table, and 8 diagrams, © 2008.
Price: $800
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| Mill Rolls Supply Market Forecast
One recent study explores the market for mill rolls in detail from 2006 to 2012, providing concise analysis and explicit, actionable recommendations for both buyers and suppliers. As demand for industrial metals soars, rolls for steel and aluminum rolling mills are in increasingly short supply. This report gets above the noise level by taking a long view of this challenging environment in which leadtimes are stretching into 2009 and availability is uncertain.
22 pages, 28 charts, tables, and diagrams, 3 chapters, © 2006.
Price: $750
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| Custom Benchmarks
Transportation equipment manufacturers are saving 21% by sourcing globally. Plasticscompanies are saving 10% by partnering with core suppliers. Electronics firms are saving 13% with long-term agreements. How muchare you saving? This customized benchmark provides a thorough andconcise audit of your strategic sourcing emphasis, scale leverage,results, and balance. You complete a 1-page form, and you get back a4-page report with 156 benchmarks (see example). Based on our databaseof over 10,000 savings benchmarks for 12 strategies in 15 differentindustries, 14 commodities, and 4 company size ranges.
Price: $800
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| USDOT Guide to Large-Scale Freight Investments
Economic trends paint a worrisome picture for the state of the U.S. freight system. U.S. domestic freight tonnage is predicted to increase by 57 percent between 2000 and 2020, and if trends continue, growth in freight volumes will exceed increases in freight capacity for the foreseeable future, causing congestion throughout the surface transportation system and decreasing the reliability of freight shipment times. As congestion increases and reliability decrease, the transport and supply chain costs will go up, raising prices for U.S. consumers and lowering the competitiveness of U.S. businesses.
Price: Free
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Economic Impact of Freight Investments
| Integrating Supply Chain Benefits into the Economic Analysis of Freight Investments
While the research literature and the number of model applications is fairly robust with respect to transportation and economic impact models, data and methodologies to model the supply chain linkage between transportation effects and broader economic impacts is relatively sparse. This presentation identifies the key sources of supply chain program benefits derived by companies that move goods. It also provides preliminary estimates of the supply chain and logistics benefits to industries from improvements to the freight transportation system.
Presented to Technology Entertainment Design Conference, 2006.
Price: $300
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| High-Impact Sourcing: Precision-Guided Strategies for Maximum Results (2005 State of Strategic Sourcing Study) Single-sourcing is twice as prevalent in aerospace and defense as in other industries. Packaging buyers award 80% of their spend to 11% of their suppliers. Transportation buyers award the top supplier 23% of the business. How many suppliers should you have, and are you developing the right ones? This study quantifies the success that over 100 companies, of which half are in the Fortune 1000, have had with 12 different sourcing techniques. 50 pages, 27 charts, tables and diagrams, 10 chapters, 2 appendices, ©2005 Boston Strategies International
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Benchmarking Your Supply Chain Savings
| Benchmarking Your Supply Chain Savings Have your purchased materials or services prices increased in the last 12 months? Which have been the most effective sourcing strategies in your industry, and for what you buy? How many suppliers should you have, and are you developing the right ones? This presentation will provide you with useful benchmarks, targets, and best practice insights on the most effective sourcing strategies.
Price: $100
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| BONUS: 2005 State of Strategic Sourcing Audio Recording "Benchmarking Your Supply Chain Savings"
David Jacoby, President of Boston Strategies International, presents industry benchmarks of savings from strategic sourcing at over 120 companies, based on 13 strategic sourcing techniques.
25 minutes, © 2005
Price: Free with purchase of Benchmarking Your Supply Chain Savings
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Budgeting for Volatility
| Budgeting for Volatility
Recent raw material price volatility has hit budgets hard. Prices of metals, wood products, paper, packaging, and fuel — just to name a few commodity-based materials — have all increased markedly. Labor costs may be the next to take off. This study explores how best-in-class companies are adjusting their procurement and budgeting practices to cope with today's economic volatility. This session will outline conventional as well as innovative tools and processes that leading companies are using to manage volatile prices and material unavailability.
Price: $100
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Metrics: From Information to Strategy
| Metrics: From Information to Strategy
The increasing amount of data that is available is changing the way managers can and do measure our business performance. How does technology assist in compiling, visualizing, managing data , and how can it help link supply chain initiatives to the balanced scorecard?
Presented to PMAB, 2007.
Price: Free
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| The New Economics of Partnering
Most companies have re-engineered their supplier relationships with through joint initiatives like consolidated distribution and collaborative new product development. How much opportunity is left for supply chain synergy?
Price: Free
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| Reduce Operations Costs Through Optimized Transportation The high and volatile cost of fuel, labor shortages, capacity constraints have caused transport rates to increase — a pain point for most shippers. What can shippers do to minimize the effect on their budgets? Transportation optimization software is a relatively quick way to identify and embed long-term savings in a transportation network. But buyers need to choose the solutions and the providers carefully to ensure the return on investment and userfriendliness.
Price: Free
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| Mitigating High Raw Material Prices
The recent raw material price volatility has hit manufacturing companies hard. Prices of metals, wood products, paper, packaging, and fuel—just to name a few commodity-based raw materials—have all increased markedly.
Price: Free
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| Measuring Sourcing Performance
Getting performance out of sourcing truly is a matter of life or death for most companies. It’s strategic for any low-cost business and for any firm that claims supply chain management as a core competency. It provides robust financial leverage and is a juicy target for P&L and stock-price enhancement for public companies.
Price: Free
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| How Long Will the East-West Trade Imbalance Last?
The East-West trade imbalance has cooled off since the US dollar has devalued. Is the change permanent? That depends on a variety of factors, but all parties must have an understanding of the Asian sourcing boom in order to make wise decisions and investments.
Price: Free
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| 2008 Logistics Rate Outlook
Where will transport rates go in 2008? Logistics Management magazine's editor interviews a panel of experts. Boston Strategies International's President, David Jacoby, shares some analysis of ocean and non-US freight rates, while modal specialists offer opinions and advice on the US domestic express, rail, and truck markets.
Price: Free
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Window of Opportunity: 2009 Logistics Rate Outlook
2009 is a hallmark year for renegotiation of rates. It is like somebody pressed the “giant reset button” of logistics.
Click here for Boston Strategies International's analysis of the 2009 rate situation.
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| The Art of High-Cost Country Sourcing
Do Western manufacturers have a path to profitable growth? You bet! Squeezed by intense price pressure and structurally high labor costs, there is a challenge but they can adapt and win in a big way. This article defines Boston Strategies International's concept of "High-Cost Country Sourcing" (HCCS).
Price: Free
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The Ocean Market: Overcapacity until 2012
Ocean carriers severely over-invested in capacity, and what goes up must come down. Carriers have removed as much capacity as possible to support rates, and it is working in some container trades. However, shippers will be in the driver's seat for several years to come.
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| China Sourcing — The Long View China has served as the world’s official factory for over a decade. Thanks to its developing economy, the country has provided a low-wage platform for sourcing everything from kitchenware to electronics. Yet, the very source of China’s success is its nemesis. Economic development is eroding China’s base cheap labor. Standards of living are increasing, and environmental standards, human rights, and intellectual property protections are getting attention. Is this the end of cheap Chinese labor?
Price: Free
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| The Asian Sourcing Boom: How Long Will It Last? (2006 State of Strategic Sourcing Study) Low-cost country sourcing has set a new threshold of cost-efficiency. Over 80% of companies plan to increase the proportion of spend in low-cost countries and are investing in expanding their global sourcing capability. In its third annual State of Strategic Sourcing study based on the experiences of operations executives at 100 companies worldwide, Boston Strategies International reveals how much sourcing from Asia has taken hold, how much they are saving, where they are investing, and what challenges they face. 29 Pages, 17 charts/tables/diagrams, 8 chapters, ©2006 Boston Strategies International Click here for free download.
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The Asian Sourcing Boom
| The Asian Sourcing Boom The “China price” has set a new threshold of cost-efficiency that others must match, either through low-cost country sourcing or by finding other ways to cut the cost of conventional sources. Asian sourcing is much more than just a labor shift — it is the tip of an iceberg that will have extensive in demographics, social security, the value of the dollar, and the global equity markets. How will it affect your company's long-term prospects?
Price: $300
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| BONUS: The Asian Sourcing Boom Videocast
Low-cost country sourcing has set a new threshold of cost-efficiency. Over 80% of companies plan to increase the proportion of spend in low-cost countries and are investing in expanding their global sourcing capability. Based on the experiences of operations executives at 100 companies worldwide, Boston Strategies International reveals how much sourcing from Asia has taken hold, how much they are saving, where they are investing, and what challenges they face. Tune in to this videocast to learn more.
40 minutes ©2008 Boston Strategies International
Price: Free with purchase of The Asian Sourcing Boom
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| BONUS: 2006 State of Strategic Sourcing Audio Recording "The Asian Sourcing Boom: How Long Will It Last?"
David Jacoby, President of Boston Strategies International, presents the long-term impact of sourcing from Asia on the economy, the sourcing organization, and your career.
40 minutes, © 2006.
Price: Free with purchase of The Asian Sourcing Boom
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| Energy Prices Reshaping the Supply Chain: Charting a New Course? (2007 State of Strategic Sourcing Study) Would a doubling of transportation or inventory carrying costs change your supply chain strategy? Would a 70% increase in the cost of Chinese-sourced products cause you to re-evaluate your sourcing plan? Can your supply chain flex to adjust to major changes in input costs? Energy volatility appears to be here to stay, and companies that are good at managing supply risk will have more cost-effective and resilient supply chains. Boston Strategies International's fourth annual State of Strategic Sourcing Study explores these issues and more. ©2007 Boston Strategies International Click here for free download.
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Energy Prices and the Supply Chain
| Energy Prices and the Supply Chain
Would a doubling of transportation or inventory carrying costs change your supply chain strategy? Would a 70% increase in the cost of Chinese-sourced products cause you to re-evaluate your sourcing plan? Can your supply chain flex to adjust to major changes in input costs? Energy volatility appears to be here to stay, and companies that are good at managing supply risk will have more cost-effective and resilient supply chains. Boston Strategies International's fourth annual State of Strategic Sourcing study explores these issues and more.
Price: $200
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| BONUS: Energy Prices and the Supply Chain Videocast
Continued strong demand and tight supply are keeping oil prices high. Industry is feeling the pain, as recent studies of prices, fuel, electricity, and consumer goods rising in response to energy costs. These issues and more make energy a hot topic for supply chain professionals, with operations, budgets, and strategies changing in the balance. What should you do to adjust your supply chain to accommodate the changes and gain, not lose, competitive advantage?
32 minutes ©2008 Boston Strategies International
Price: Free with purchase of Energy Prices Reshaping the Supply Chain
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National Manufacturing: Energy Prices
| National Manufacturing: Energy Prices
Would a doubling of transportation or inventory carrying costs change your supply chain strategy? Would a 70% increase in the cost of foreign-sourced products cause you to re-evaluate your sourcing plan? Can your supply chain flex to adjust to major changes in input costs? Energy volatility appears to be here stay, and companies that are good at managing supply risk will have more cost-effective and resilient supply chains. This presentation will share the most profitable strategies that turn this problem into an opportunity.
Presented to National Manufacturing Week, 2007.
Price: $200
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| BONUS: 2007 State of Strategic Sourcing Audio Recording "Energy Prices Reshaping the Supply Chain"
David Jacoby, President of Boston Strategies International, presents the impact of energy prices on supply chains, and forecasts the impact on sourcing and supply management for the next 20 years.
32 minutes, 2007.
Price: Free with purchase of National Manufacturing: Energy Prices
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Please fill out the following form to request any of the available free research. Materials in the Boston Strategies International Library are available to supply chain practitioners and policy makers.
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