Managing the Global Supply Chain in an Uncertain World
We live in interesting times. Powerful forces are re-shaping the global business scene : financial and economic upheaval in the Far East, Latin America and Russia is creating a tidal-wave of change in the competitive environment. Organisations that once felt insulated from overseas low-priced competitors now find that they too must not only continue to constantly create new value for customers, but must do so at a lower price.
To meet the challenge of simultaneously reducing cost and enhancing customer value, requires a radically different approach to the way the business responds to marketplace demand. One of the keys to success is the creation of an agile supply chain on a worldwide scale.
The agile supply chain
There is now widespread recognition of the role that supply chain management can play in enabling organisations to compete in volatile markets. However, experience suggests that there are significant barriers both within the company and between its upstream and downstream partners in achieving the required level of responsiveness across the chain as a whole. Continuous change is a phenomenon with which the supply chains have had to cope for some time. But the rate, scale and unpredictability of change is today’s turbulent business environment is seriously challenging supply chains based on 1990s best practice.
The logistics environment of the new millennium will have to contend with:-
· turbulent markets that change rapidly and unpredictably
· highly fragmented ‘niche’ markets instead of mass markets
· ever greater rates of technological innovation in products and processes
· shorter product life-cycles
· growing demand for tailored products - ‘mass customisation’
· the delivery of complete ‘solutions’ to customers, comprising products and services. And all of the above to be achieved at less cost!
These severe challenges mean that a new operating paradigm is needed. The key factor is agility - rapid strategic and operational
To meet the challenge of simultaneously reducing cost and enhancing customer value, requires a radically different approach to the way the business responds to marketplace demand. One of the keys to success is the creation of an agile supply chain on a worldwide scale.
The agile supply chain
There is now widespread recognition of the role that supply chain management can play in enabling organisations to compete in volatile markets. However, experience suggests that there are significant barriers both within the company and between its upstream and downstream partners in achieving the required level of responsiveness across the chain as a whole. Continuous change is a phenomenon with which the supply chains have had to cope for some time. But the rate, scale and unpredictability of change is today’s turbulent business environment is seriously challenging supply chains based on 1990s best practice.
The logistics environment of the new millennium will have to contend with:-
· turbulent markets that change rapidly and unpredictably
· highly fragmented ‘niche’ markets instead of mass markets
· ever greater rates of technological innovation in products and processes
· shorter product life-cycles
· growing demand for tailored products - ‘mass customisation’
· the delivery of complete ‘solutions’ to customers, comprising products and services. And all of the above to be achieved at less cost!
These severe challenges mean that a new operating paradigm is needed. The key factor is agility - rapid strategic and operational