Global Supply chain Trends 2010 - 2012
The article is based on an annual survey by PRTM Management consultants that delved to investigate the supportiveness of the supply chains to the recovery and the experience gained from the worldwide economic decline. The authors Dr. Reinhard Geissbauer and Michael D’heur have made an attempt to expound on the pertinent issues in the survey pointing to the trends in supply chains both current and in the near future of about three years.
Out of the five world continents, the survey was based on three continents Europe, Asia and America leaving out Africa and Australia. This is a good representation of the world population. More so the respondents are qualified to give accurate information on the topic.
The document argues that most companies are optimistic on the economic raise in the next few years; however, they are deprived of capabilities to meet the increasing demand. It enumerates the challenges that supply chains will have to overcome to gain from an improving economy. These include;- the volatility and uncertainty of supply chains, truly global supplier networks, regionally cost optimized supply chain configurations, risk management and integration and empowerment of existing supply chain organizations. Supply chains were relatively stable and predictable before the economic crisis. Thereafter, service providers were in a quagmire as to the inventory to carry as forecasts were unreliable and networks faced frequent disruptions. However, those companies that adapted to the trend had to implement changes to forecasting and planning. So far about 37% have adapted to shorter planning cycles like weekly and focused on critical inventory as holding costs escalated. Companies have also included key tier 2 suppliers to cover up in the network interruptions. The instability and unpredictability of supply chains can be improved by focusing on customer access and accuracy of supply chain planning. This is...
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