Tuesday, 27 May 2014

What are the Current Trends in Global Supply Chain Management?

The global supply chain is experiencing some clear development trends that are shaping the operations involved. These trends are as follows:
  • Supply chain volatility is increasing. As a result of fast changing demands and uncertainty in the markets it is necessary for the supply chain to continue focusing on being flexible and having fast response times.
  • Market growth is dependent on the global customers as well as the supplier networks. Outsourcing and reducing in house facilities is expected to continue to decline while outsourcing and the use of off shore international contractors is expected to rise. It adds value and creates a more consolidated supply base.
  • Cost optimised supply chain configurations are expected to increase over the next couple of years. The gains are going to be from a reduction in the cost of the end to end supply chain using outsourcing as a function that will control the costs efficiently.
  • Risk management involves the end to end supply chain with trends moving towards placing risks from one part of the chain to another. The practices used to effectively mitigate the risks in the end to end supply chain include inventory management, joint production and resource planning and improved deliveries for customers.
  • Placing more emphasis on supply chain integration and empowerment allows action to be taken when necessary. Being able to make decisions down the chain requires improvements and supply chain managers require leading roles in how the business develops.

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