Tompkins acquires Technomic Asia in global gambit

This supply chain consultant explains why a presence in Asia will be necessary to be truly successful with any global supply chain strategy.

By Tom Andel, Editor in Chief -- Modern Materials Handling, 2/6/2008

In keeping with its CEO’s vision of peak to peak performance, Tompkins Associates is now taking a swing from domestic to global supply chain strategy. Tompkins has acquired Shanghai-based Technomic Asia as the first step in taking clients with it on its global mission of supply chain optimization. The acquisition enhances Tompkins’ ability to assist businesses to both establish operations in Asia and to improve their processes and performance as part of their overall supply chain strategies.

“Companies cannot be successful unless they have a true global supply chain strategy,” says Jim Tompkins, the consulting firm’s president and CEO. “There are different levels of being global. There are those who buy things from a dealer who buys things from China, then there’s direct sourcing where you decide to go to China and open a buying office. Then there’s strategic sourcing—buying a factory over there or doing a joint venture. That’s what’s missing: knowing what’s right. If you do the wrong business strategy you can have the greatest supply chain in the world but you won’t do well.”

Although the company just announced its plans for Asia, Tompkins told Modern that Europe isn’t far behind.

“The largest trade channel is Asia to Asia, particularly China to India,” Tompkins said. “The second largest is China to U.S., and the third is China to Europe. The companies with an integrated global supply chain in those three geographic locations will be the champions.”

Technomic Asia has more than two decades of experience helping clients enter, expand and optimize their operations in China and throughout Asia. According to Steve Ganster, Technomic Asia’s managing director, this type of fusion is needed today.

“By merging with Tompkins, we have the opportunity to combine resources, experience and knowledge and share the highest level of business strategy and global supply chain expertise with our clients.”