Afternoon Coffee: U.S. focuses on supply chains as companies weigh relocating China operations; ’50/50′ video for Scout RFP

U.S. Secretary of State Mike Pompeo has told a news conference that the U.S. was in talks with its friends for restructuring global supply chains, reports the Business Standard. This comes in the aftermath of the severe disruptions caused by the coronavirus pandemic.

"We're working with our friends in Australia, India, and Japan, New Zealand, the Republic of Korea, and Vietnam to share information and best practices as we begin to move the global economy forward," Pompeo told reporters.

"Our conversation certainly involved global supply chains, keeping them running smoothly, getting our economies back to full strength and thinking about how we restructure the supply chains to prevent something like this from ever happening again."

100 U.S. companies interested in moving production from China to India

As many as 100 U.S. companies are interested in moving out of China after the severe disruptions caused by the COVID-19 pandemic, the Financial Express reports. They are considering relocating to Uttar Pradesh in northern India.

A business minister in Uttar Pradesh held a webinar with the companies that was organized by the United States-India Strategic Partnership Forum. The companies mentioned in the article include Adobe, Boston Scientific, Cisco Systems, FedEx, Honeywell, Lockheed Martin and UPS. Prior to this, Indian Prime Minister Narendra Modi had tasked Indian states with turning the coronavirus crisis “into an opportunity,” the report said.

Survey: Many reluctant to relocate supply chains

A new survey by PwC has found that most supply chains will not relocate following the coronavirus pandemic, Supply Chain Dive reports. The survey of more than 300 CFOs conducted the week of April 20, found that while diversifying the supply chain has become a priority, they will only relocate as a last resort (74%). More than half plan to find additional sourcing options for their supply chain (56%), but it is a long-term goal.

The results find that CFOs plan to be more careful on which supplier they choose to work with in the future. However, as the coronavirus disruptions peak, CFOs are also showing signs of losing interest in supply chain issues as economies begin to open back up, the report said.

Analyst video highlights Scout RFP on new ‘50/50’ lists

Spend Matters’ analysts chose 2020's top procurement technology vendors for the “50 to Know” and the “50 to Watch” lists, and our analysts also have done videos about some of the providers that will attend the digital SIG Procurement Technology Summit, which begins May 11. The videos are out now, and Afternoon Coffee will feature a couple of them each day.

Scout RFP, a sourcing provider:

“Scout RFP is a relatively new player in the crowded sourcing market. They entered the market with a big focus on ease-of-use,” says analyst Magnus Bergfors, Vice President of European Research for Spend Matters. “They have been able to rapidly gain an impressive client list and won a large number of deals.” See our full Scout RFP video here.

The 50/50 lists are part of Spend Matters Almanac, a directory of more than 500 providers that offers deep insights on the players in the procurement technology market.

NovEx acquires BGS Fulfillment to expand U.S. supply chain

NovEx Supply Chain, LLC has acquired Memphis-based B2B warehousing company BGS Fulfillment, PR Newswire reports. The Salt Lake City-based technology-driven fulfillment company will use the acquisition of BGS Fulfillment to serve the majority of the U.S.

NovEx says that the partnership will allow the company to work on final-mile drone delivery. The company has similar deals in the works in Canada, India and the U.K.

Inceptio Technology raises $100 million toward autonomous trucks

Inceptio Technology, an autonomous trucking startup, has announced the completion of $100 million in capital raising, Business Wire reports. The company also announced A-sample validation in L3 autonomous truck volume production development. The U.S.-based company is building a proprietary autonomous trucking technology with plans to operate its own nationwide trucking network in China starting in 2022.

Inceptio is partnering with several large OEMs in volume production of the trucks. The first autonomous trucks are planned to roll off the production line by the end of 2021.

Spend Matters PRO offer extended for May

Now through May, a Spend Matters' special PRO Expert Survival Pack is available to procurement practitioners only* at up to 50% off. The discount applies to PRO subscription content from our analysts and other services. — Learn more

Read all of Spend Matters’ coronavirus coverage here.

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