Why the "Made in X" Doesn't Tell the Whole Story

Walk into any store, turn over a product, and you'll probably find a small label that reads "Made in Vietnam," "Made in Spain," "Made in China," or another country of origin. Most of us assume that this tells us where the product came from.

In reality, it tells only the final chapter of a much longer story.

Modern supply chains are global ecosystems, where dozens, or even hundreds, of companies across multiple continents collaborate to create a single finished product. The country printed on the label often represents only the location of the final assembly, not where the product's journey truly began.

Take a smartphone as an example.

Before it reaches your pocket, its components may have traveled thousands of kilometers:

• Rare earth minerals extracted in Africa.
• Semiconductor wafers manufactured in Taiwan or South Korea.
• Memory chips produced in Japan.
• Camera modules assembled in another country.
• Display panels sourced from specialized manufacturers elsewhere in Asia.
• Batteries produced by dedicated suppliers.
• Final assembly completed in Vietnam, China, or India.

When the phone finally receives its "Made in..." label, it has already crossed multiple borders and passed through an intricate network of suppliers, manufacturers, logistics providers, ports, warehouses, and distribution centers.

That label captures the final step. not the entire journey. But why It Matters?

Understanding this complexity helps explain why global events can affect products seemingly unrelated to the countries involved.

A disruption at a semiconductor plant, a port strike, a drought affecting raw materials, or new trade regulations can ripple through the entire supply chain. Even if the final assembly takes place in one country, critical components may originate from many others.

This interconnectedness is why supply chain resilience has become a strategic priority for businesses worldwide.

Global supply chains are often viewed through the lens of cost reduction, but they also represent collaboration on an extraordinary scale.

Each participant contributes specialized expertise:

• Raw material producers
• Component manufacturers
• Technology innovators
• Logistics providers
• Quality inspectors
• Distributors
• Retailers

The finished product is the result of thousands of coordinated decisions made across different organizations, cultures, and time zones.

The next time you pick up a coffee machine, a bicycle, or a smartphone, take a moment to look beyond the country printed on the label.

That simple phrase "Made in..." isn't the whole story. It's the final signature on a journey that may have spanned dozens of countries, hundreds of suppliers, and countless logistical operations before arriving in your hands.

In supply chain management, every product tells a global story. The label simply reveals where the last chapter was written.

Digital twin: Conecting the digital and real world

The term “digital twin” might sound futuristic, but it’s quickly becoming a practical tool reshaping how operations and supply chains work today.

In simple terms, a digital twin is a virtual replica of a real-world object, system, or process; anything from a single machine to an entire manufacturing network.

Imagine your factory, warehouse, or supply chain recreated in a digital space. This virtual version mirrors what’s happening in real time, thanks to data flowing in from sensors, IoT devices, and business systems. Every movement, transaction, and temperature change can be captured and reflected in the digital twin.

So, what’s the point? The value lies in simulation and insight. A digital twin allows you to experiment and test scenarios without affecting actual operations. You can explore what might happen if a supplier goes offline, if demand spikes unexpectedly, or if a new route could shorten delivery times. Instead of reacting to problems after they occur, you can anticipate and plan for them.

This technology helps organizations make smarter, faster decisions. Maintenance can become predictive instead of reactive. Inventory planning can adjust automatically to real-time demand. Logistics teams can visualize the entire flow of goods and identify inefficiencies before they cause delays.

Ultimately, a digital twin acts as your operation’s virtual brain, continuously learning, adapting, and optimizing. It bridges the gap between the physical and digital worlds, giving supply chain leaders greater visibility, control, and confidence in every decision.

The future of operations isn’t just physical anymore. It’s mirrored, modeled, and improved through digital twins.

 

Understanding the 7 Types of Logistics

In today’s fast-paced and interconnected world, logistics is the backbone of successful supply chain management. But logistics is far more than just trucks and warehouses, it’s a complex network of movements that support everything from manufacturing and retail to military operations and live events.

Let’s break down the 7 main types of logistics, each with its own purpose and value in the supply chain:

1. Inbound Logistics: This refers to the movement of raw materials and components from suppliers to a business. It plays a crucial role in manufacturing. For example, a car manufacturer receiving engines, tires, and electronics depends heavily on a well-organized inbound logistics system.

2. Outbound Logistics: Once products are finished, outbound logistics ensures they reach the customer. It includes warehousing, packaging, and transportation. Think of Amazon shipping products from its fulfillment centers to your doorstep.

3. Reverse Logistics: This process moves goods back from customers to the business. It includes returns, recycling, repairs, or disposal. E-commerce companies rely on reverse logistics to handle product returns efficiently.

4. Third-Party Logistics (3PL): Many companies outsource logistics operations like transportation, warehousing, and distribution to service providers. DHL or FedEx, for instance, manage end-to-end supply chains for other businesses, allowing them to focus on their core operations.

5. Fourth-Party Logistics (4PL): This is a step above 3PL. A 4PL provider acts as a strategic partner, overseeing and integrating multiple 3PL services for a manufacturer. It offers a big-picture approach to managing the entire logistics ecosystem.

6. Military Logistics: Beyond commercial use, logistics is critical in military operations. It involves planning, movement, and supply of troops, equipment, and ammunition. Effective military logistics can mean the difference between mission success and failure.

7. Event Logistics: Ever wondered how entire music festivals or sports events come together? Event logistics handles the planning and transportation of staging, lighting, and equipment. It ensures everything is in the right place at the right time, from concerts to exhibitions.

Logistics isn’t one-size-fits-all. Each type serves a unique function in supporting business, operations, or events. Understanding these logistics types helps supply chain professionals optimize efficiency, reduce costs, and improve customer satisfaction.

Understanding the 7 Main Types of Shipping Containers in Global Supply Chains

In today’s interconnected world, shipping containers are the unsung heroes of global trade.

From electronics to fresh produce, nearly every product we use has spent time inside one of these versatile metal boxes. But not all containers are created equal, each type is designed for a specific set of cargo requirements.

Here are the seven most commonly used shipment containers and how they serve the diverse needs of modern supply chains.

1. Standard Dry Container (20ft or 40ft):

This is the most widely used container in the world. It’s fully enclosed, weatherproof, and suitable for general cargo.

Think furniture, textiles, machinery, and consumer goods. Most dry containers come in 20-foot and 40-foot lengths and can be stacked and transported easily by ship, truck, or rail.

2. High Cube Container:

Similar to standard containers but with an extra foot of vertical space (usually 9'6" high instead of 8'6"), high cube containers are ideal for lightweight, high-volume goods. They're often used for bulkier cargo like automotive parts, paper products, or large electronics that benefit from the additional headroom.

3. Open Top Container:

Designed for cargo that can’t be loaded through standard doors—like large machinery, construction equipment, or oddly shaped materials, open top containers have a removable roof. They allow for crane loading from above, making them practical for oversized freight.

4. Flat Rack Container:

With collapsible sides and no roof, flat racks are engineered for heavy loads and oversized items such as steel coils, industrial pipes, or vehicles. These containers allow cargo to extend beyond the sides, making them a flexible choice for large or awkward shipments.

5. Refrigerated Container (Reefer):

When it comes to perishable goods like food, pharmaceuticals, or flowers, reefers are essential. These containers are equipped with active temperature control systems that keep cargo at a specific temperature throughout the journey, ensuring quality and compliance with safety standards.

6. Open Side Container:

These containers have side doors that open fully, offering greater accessibility for loading wide or irregularly shaped cargo. They’re often used in retail and manufacturing sectors where easy access to specific items within the container is essential.

7. Tank Container:

Built for transporting liquids, gases, and chemicals, tank containers are cylindrical tanks housed within a steel frame. They are heavily regulated and ideal for food-grade liquids like wine or milk, as well as hazardous materials, ensuring safe and efficient transit.

Choosing the right container isn't just about space, it’s about efficiency, compliance, and cost control. Understanding the functions of each container type can help make better decisions, reduce damage risk, and optimize the flow of goods across borders.

Whether you're moving basic goods or specialized cargo, the right container can be the difference between a smooth shipment and costly delays.

 

The Hidden Factory: The Silent Killer of Supply Chain Efficiency

In supply chain operations, we pride ourselves on precision, efficiency, and continuous improvement.

But what if I told you there’s an entire shadow process operating inside your workflows quietly consuming time, resources, and money and it’s not even on your radar?

Welcome to the world of the Hidden Factory.

What is a Hidden Factory?

A Hidden Factory is the collection of all the rework, corrections, and unofficial fixes that happen behind the scenes to make a process appear like it's working smoothly. These aren’t logged as defects. They don’t show up in your dashboards. But they exist.

These might look like:

• Warehouse staff quietly relabeling mis-picked items before shipping.
• Customer service reps manually adjusting inventory levels in the system to correct errors.
• Planners double-checking forecasts with spreadsheets because they don’t trust the MRP output.

Individually, these “workarounds” seem harmless even helpful. But collectively, they signal process gaps that are eating into your margins and scalability.

Hidden factories are dangerous because they create the illusion of control. Everything looks good on paper, but under the surface, people are compensating for broken processes.

The good news is, Hidden factories can be found and fixed. Here are some ways to shine a light on them:

1. Listen to the “Off-the-Record” Conversations; pay attention when someone says:

“Oh, I always fix that before it causes a problem.” “It’s faster if I just do it this way.”

2. Map the Actual Process (Not the SOP)

Use value stream mapping to compare how the process is supposed to work versus how it actually works. You'll often find extra steps that aren't documented anywhere, that's your hidden factory.

3. Look at Cycle Time Variance

If your standard cycle time says an order takes 3 hours, but in practice it’s closer to 5, that discrepancy is usually where the rework is hiding.

4. Involve the Front Lines

Your team knows. Engage operators, planners, and support staff early and often, they live the day-to-day realities that KPIs can’t always capture.

The Largest Courier Companies in the World

Interesting infographic showing by market capitalization the largest courier companies in the world.

It´s no surpirse that the “big three” global couriers, United Parcel Service (UPS), FedEx, and DHL continue to dominate transport services with closer to 70% of market cap.

Having said that, other carriers that operate more regionally have still attained a lot of value, including Japan Post Holdings and China’s S.F. Express and ZTO Express.

Lean 8 wastes

  

Before we dive into the eight types of wastes, it is important to understand what waste is.

Waste is any action or step in a process that does not add value to the customer.

Originally seven wastes (Muda) were identified, and a methodology was developed by Toyota, as part of the Toyota Production System (TPS).

The seven wastes were; Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing and Defects. They are often referred to by the acronym ‘TIMWOOD’.

The 8th waste of non-utilized talent or ‘Skills’ of workers was later introduced in the 1990s when the Toyota Production System was adopted in the Western world. As a result, the 8 wastes are commonly referred to as ‘TIMWOODS’.

We can now deep dive into each of these eight wastes and understand how we can reduce or eliminate them as part of a leaner and more efficient operations.

The Insane Logistics of Formula 1

If you think Formula 1 races are amazing and the pinnacle of technology applied to sport, you are probably right.

There is no other sport where machinery and components are as crucial to the team success as in Formula 1.

But with twenty-one races across five continents every year, the ten teams that take part on the competition face an astronomical challenge to ensure all what they need to be competitive during the weekend is ready.

Hundreds of pellets and containers travelling around the globe moving enough equipment to ensure the comfort of thousands of workers and the capabilities to assemble and disassemble a racing car every weekend.

We already talked about what happens behind the scenes in the Red Bull air racing competition here, now is time to go even further and watch the logistics miracle that happens in Formula 1!

Enjoy!

Good Distribution Practices (GDP) & Good Manufacturing Practices (GMP)

 

Good distribution practices (GDP) and good manufacturing practices (GMP) are quality standards and guidelines that have the same objective, to ensure medical device and pharmaceutical products are safe, meet their intended use, and comply with regulations.

GMP focuses on manufacturing processes, while GDP covers distribution activities.

Good manufacturing practices involve consistently producing products that meet quality standards. This requires the implementation of a system where the aim is to minimize risks, from incorrect labelling of products to contamination to incorrect ingredients and everything in between. GMP cover all parts of the production process, from raw materials through to the production of the finished product.

Good distribution practices involve maintaining the quality and integrity of products through all stages of the supply chain. GDP applies to warehousing, storage, and transportation, and it covers everything from storing and transporting products under the right conditions and ensuring product integrity at the correct destination on time.

There are parts of GDP that are unique, so they don’t apply to GMP. Those unique parts of GDP include guidance on transportation covering aspects such as temperature control, vehicle controls, and conducting risk assessments on transport routes.

Logistionary: Kanban

Kanban is a visual scheduling system for lean manufacturing.

It all started in the early 1940s when the first Kanban system was developed by Taiichi Ohno for Toyota automotive in Japan. It was created as a simple planning system, the aim of which was to control and manage work and inventory at every stage of production optimally.

The Kanban method gets its name from the use of kanban, visual signalling mechanisms to control work in progress for intangible work products.

Kanban aligns inventory levels with actual consumption. A signal tells a supplier to produce and deliver a new shipment when a material is consumed. This signal is tracked through the replenishment cycle, bringing visibility to the supplier, consumer, and buyer.

In contexts where supply time is lengthy and demand is difficult to forecast, often the best one can do is to respond quickly to observed demand. This situation is exactly what a kanban system accomplishes, in that it is used as a demand signal that immediately travels through the supply chain.

Kanban cards are a key component of kanban, and they signal the need to move materials within a production facility or to move materials from an outside supplier into the production facility. The kanban card is, in effect, a message that signals a depletion of product, parts, or inventory. When received, the kanban triggers replenishment of that product, part, or inventory.

Three-bin system

An example of a simple kanban system implementation is a "three-bin system" for the supplied parts, where there is no in-house manufacturing. One bin is on the factory floor (the initial demand point), one bin is in the factory store (the inventory control point), and one bin is at the supplier. The bins usually have a removable card containing the product details and other relevant information, the classic kanban card.

When the bin on the factory floor is empty (because the parts in it were used up in a manufacturing process), the empty bin and its kanban card are returned to the factory store (the inventory control point). The factory store replaces the empty bin on the factory floor with the full bin from the factory store, which also contains a kanban card. The factory store sends the empty bin with its kanban card to the supplier. The supplier's full product bin, with its kanban card, is delivered to the factory store; the supplier keeps the empty bin. This is the final step in the process. Thus, the process never runs out of product, and could be described as a closed loop, in that it provides the exact amount required, with only one spare bin so there is never oversupply.

If all this is confusing, and you´re still not clear on how Kanban works, Im sure the next image will make everything fall into place! One image is indeed worth a thousand words as they say!

Gartner 2023 top 25 Supply Chain companies

Gartner has once more released the results from its annual Global Supply Chain Top 25, identifying leading supply chain organizations, highlighting trends and sharing best practices.

Schneider Electric claimed the top position in the list this year, followed in second place by Cisco Systems, which capped a run of three consecutive years in the top position last year. Colgate-Palmolive, Johnson & Johnson and PepsiCo rounded out the top five positions. Tesla, AB Inbev, GlaxoSmithKline and Dow were the new entrants on the list.

Some interesting moved over the years with companies joining the list and some others being relegated; in these links you can check how the ranking has evolved over the last few years:

2016

2018

2021

Gartner continues to recognize sustained supply chain performance via the “Masters” category, introduced in 2015. To be considered Masters, companies must have attained top-five composite scores for at least seven out of the last 10 years. Amazon, Apple, P&G and Unilever all qualified for the category this year.

Hoshin Kanri: translating strategic plans into actionable items

Many companies struggle with translating strategic plans into actionable items on a daily process, luckily, among the most powerful tools in the Lean arsenal for effective strategic management we can find Hoshin Kanri.

Similar Jidoka or Just in Time, Hoshin Kanri has its roots in the Toyota Production System and as a tool, it can be very helpful, when implemented properly, in bridging the gap between strategy and execution.

Hoshin Kanri has a Matrix shape with four quadrants each devoted to a specific task.

1-     Set the strategic vision & goals (3-5 year breakthrough objectives):

 

The long-term goals is the starting point In Hoshin Kanri, normally in the frame between 3 and 5 years.

 

List them at the bottom quadrant of the matrix template and have in mind that every initiative will have many smaller tasks that will need to process before achieving the goal.

 

2-     Define key mid-term objectives (annual objectives)

After your long-term goals are all set, prepare the most important objectives that you aim to achieve in a shorter time frame and put them in the left quadrant of the Hoshin matrix.

 

3-     Set short-term actions and metrics (improvement priorities)

 

You will need to fill the top quadrant with the most important activities that need to be completed to achieve the short-term goals, this is basically the to-do list for the upcoming months.

 

4-     Agree on key performance indicators (targets to improve)

Agree on the most crucial metrics that need to be improved and list them on the diagram.

 

Following this line of thought, right next to the key metrics, you need to list the key stakeholders responsible for leading the completion of the activities in the matrix's top quadrant.

 

Finally, you should complete the picture by specifying the dependencies between every listing in your matrix.

How are Supply Chain issues reshaping fast food value menus

If there has ever been an indicator of inflation, it is fast food value menus. These items or menus have always been the last to reflect changes in prices and have been the last resource indicating whether the economy was at a serious risk.

In the current economic environment, with inflation skyrocketing driven among other things by the several Supply Chain challenges and constraints most of the world are facing, fast food chains have had no other option but to increase the prices on their most iconic menus, leaving customers with the sensation that the old prices are gone for good.

The below video explains some of the challenges fast food chains have been facing and how Supply Chains have been key drivers for the latest price increases.

How China's Covid Shutdowns Keep Hitting Global Supply Chains

It´s no secret China has been keeping a very tight approach on Covid with widespread lockdowns and a tight control on key sectors. The consequences have been felt across the globe.

The video below sheds some light on the impact this approach has had on Supply Chains.  

 

Logistionary: Demurrage and detention

Demurrage is a fine to the buyer which is enforced by a freight provider if they do not take their goods away from a port or terminal. Often ports and terminals allow importers to store goods or containers for a number of ‘free’ days, after which charges are applied.

As an example, let’s say a container is being shipped from a supplier in China to a port in Amsterdam. The port normally allows 7 free days of storage, after which they will start charging.

Detention on the other hand is a charge that can be enforced by a transport provider for not returning an empty container to a container yard or port after an agreed time.

As an example, if the buyer of goods takes a container to their factory for 14 days to unpack, and the shipping port allows just 10 days to return the box, then the shipping line will be charged ‘detention’ for 4 days.

The main difference between demurrage fees and detention fees is that demurrage fees are charged when a container is still full and under the control of the shipping line whereas detention charges, on the other hand, occur when the buyer holds on to a container outside the port beyond the specified free time given by the shipping line.

In very simple terms, demurrage charges relate to full containers while detention charges apply to empty containers.

Why Global Supply Chains May Never Be the Same

It´s been two years now since the strain and pressure on Supply Chains has been on the spot light.

Starting with the COVID 19 pandemic and the acceleration of e-commerce, followed by the likes of Brexit, the blockage of the Suez canal and the transport shortages to name a few, to the most recent events with the war between Russia and Ukraine.

It´s safe to say that not even the most through business continuity plan would have covered all of these, and as a result, Supply Chains have suffered the most to keep up with the new market dynamics.

The documentary below, showcases to the profane eye, the challenges of the current supply and logistics flows and it´s a reminder of the complexity of the Supply Chains in a world where globalisation has been the predominant model over the last two decades. 

The world busiest ports

An estimated 90% of world trade is handled through maritime shipping, and as trade volumes continue to increase, the world’s busiest ports continue to grow.

Only five of the top 20 ports in the world are now located outside of East Asia, and only three European ports made the cut.

It´s not a surprise that China continues playing a critical role in the global supply chain, and as a result, over the past decade, China has emerged as the heavyweight champion of world shipping.

In 2006 only three of the top 10 busiest ports were in China, nowadays, seven out of the 10 busiest ports are located in China, and an estimated two-thirds of container traffic now passes through Chinese ports or ports that have received Chinese investment.

 

Amazon, the business that made Supply Chain a real competitive advantage

It´s no secret that Amazon is one of the most relevant companies ever created in the last century and it´s also no surprise that Supply Chain is at the core of what they do.

Amazon is by definition, the company that has scaled operations to levels we never saw before, and its Supply Chain have reached the status of almost being unbeatable.

The one project that has put Amazon´s Supply Chain capabilities on the spot once more is their latest endeavour to start using drones to manage their deliveries in the very near future.

These automated machines that are not limited by traffic or other mundane constraints that traditional delivery methods face, can once more demonstrate that Supply Chain can be a competitive advantage for those companies willing to invest the time and resources on developing these capabilities.

How to fix broken supply chains

It won´t be new news if I say that Supply Chain challenges are not new, but it´s fair to say, in recent times they have become more real than ever and seem to have shaken up the way we have been looking at them in the past.

It´s rare the day we don´t see in the media news about new or existing disruption driven by the current Supply Chain challenges, and if whether you work directly in the field of Supply Chain or not, you surely would have been impacted one way or another, whether it was by out of stocks, delays on getting your parcels or prices skyrocketing to levels we have never seen before.

The good news is, that for these challenges, there are potential solutions. The caveat is, that they require a level of trust, transparency and openness that most companies and governments are probably not ready to achieve.

Having said that, in the video you can find in the link below, trade expert Dustin Burke explains how companies can keep up with the existing challenges and what will might take to address and improve some of them to create a more resilient and efficient Supply Chain tomorrow.

Enjoy!

TED Talk: How to fix broken Supply Chains

Supply Chain predictions in 2022

 

It´s no secret that Supply Chain has become one of the most heard words in 2021. If nothing else, we have spent pretty much the entire year battling Supply Chain disruptions, and this is likely to continue in this new year.

From a sudden increase in cyberattacks during the first quarter of the year to port congestions and labour shortages, we have faced unprecedented challenges in the Supply Chain arena in 2021.

But it´s fair to say that with challenges there were also opportunities for organizations to learn, adapt to unexpected circumstances and develop new ways of working.

As we start a new year, here are four trends that we might see more of in 2022.

1 - Supply Chain issues are here to stay

The current landscape is not going to fix itself in the early days of 2022, and it´s very likely that it will take months for all of the issues that in 2021 caused a perfect storm to start fading away.

Global shortages of plastic and paper as well as labour will continue impacting Supply Chains, this will mean continued order delay and supply shortages.

2 - Automation to compensate the labour shortage

Linked to the first point, in 2022, labour shortages are expected to continue, in order to close the gap, business leaders will need to continue heavily investing in automation technology to perform certain tasks for which labour is in scarce.

Aditionally we will see further development in new technologies like AI to carry out more complex tasks.

3 - Increased logistics costs

2020 and 2021 saw the explosion of logistics costs after many years of efficiencies and cost reductions. As online shopping, inflation and energy cost continue to drive prices higher, we can expect cost to contiue increasing in the near future.

Transport and raw meterials, will drive the increase due to the existing shortages as well as a rise in demand that has been exceding existing supply for the best part of 2021.

4 - Big focus on sustainability

Consumer growing efforts to be more environmentally responsible has been and will continue pushing companies and specifically Supply Chains to cause less harm to the environment. 

Companies are expected to implement more eco-friendly Supply Chain processes and transportation will likely migrate to more environmentally friendly alternatives to reduce greenhouse gas emissions.

On the same topic, in 2022 we will likely see an acceleration to shift to circular Supply Chains where manufacturers will reuse and refurbish discarded products for resale, moving away from the traditional linear Supply Chain. 

Stricter goverment regulations on recycling and waste disposal will also push for this trend to accelerate in 2022 and business with sustainable practices will get the approval not only from the goverment but also from consumers.

All in all 2022 will see a continuation of some of the challenges faced in prior years, however business have had the chance to develop new ways to mitigate these challenges and are becoming more and more efficient in managing the current complex landscape.

This year that just started will for sure be full of challenges but will also be a year full of opportunities.