Tuesday, 24 November 2015

What are the ingredients of a sustainable supply chain strategy? Part 2

(Ingredient 2 -Recognizing and Assessing Both Current and Future Trends)

Complex supply chains are affected by a number of issues:

1.     Globalisation
2.     Competition
3.     Social and economic trends
4.     Longer supply chains,
5.     Demands from shareholders and stakeholders

The sustainable strategies should be flexible so that they can adapt to trends early and quickly with the focus on ensuring the long term success of the company. Supply chain managers will need to be able to evaluate the positive and negative aspects of the supply chain and identify the trends.  Managers and stakeholders should involve themselves in the traditional tool of “scenario planning” early on to plan and develop different business paths. This standard tool is used quite frequently by companies due to the simplicity and successfulness of application. It is important for companies to be able to identify the trends but also to assess the possible impact it have on their supply chain.  Understanding the cause and effect relationships between the trends and the supply chain are essential in helping companies embark on critical action that require long lead times.

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