The Supply Chain of the Next Decade ---a Study on the Context of Global Supply Chain

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The Supply Chain of the Next Decade

---A Study on the Context of Global Supply Chain

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National University of Singapore

Industrial and System Engineering

Group Leader: Zhang Juzheng

Group Members: Gu Shimin

Jiang Tao

Lin Qian

Research Objective

This research examines the current context of supply chain in terms of macroeconomic context, sustainability of supply chain, financial support, and the trend of simplifying supply chain. Based on the current situation, this research aims to explore opportunities that may arise in the next decade leading to 2020 for improvement on supply chain.

Methodology

1) Case study on companies that adapt to the context change in past decade and achieve effective supply chain management. This research makes study on Apple, the global leading company and Ta-Q-Bin, a Japanese delivery services provider, which is dominant in Japan market, and successful in Asia.

2) SWOT analysis in evaluating the strengths, weaknesses/limitations, opportunities and threats of business strategies catering to context change in the next decade.

Part I Identify main changes and trend drivers for future global supply chain

Shifting of economic power- In the next decade new economic powers like China and India will continue to rise. New trade areas will evolve and a new generation of globally competitive companies from developing markets will emerge, helping to further solidify their position in the global marketplace.

The global manufacturing and sourcing landscape will change, as more multinational companies will be created in developing countries themselves, supplying first the developing markets, and then possibly expanding marketing and even manufacturing to industrial countries.

Increased urbanization- The continuous and larger scale emigration from rural area to city strains the city distribution network.

Aging population- The changing population structure requires more accommodation for the needs of an older population. This will change include shuttle services, more home delivery, assisted-living facilities, home shopping, among other developments.

The rise of social media- Keys to success will be selecting the right social communities to effectively interact with the target consumer groups, and determining how to leverage the huge amounts of online consumer data.

Consumer service demands- The exponential growth and adoption of consumer technologies will drive new levels of service demands by shoppers and consumers. We will see the rise of a stronger web-based service economy, giving customers greater choice of shopping options and improved transparency.

Scarcity of natural resources- By 2030, the world’s population will reach 8.3 billion. This growth will continue to put pressure on natural resources like energy and water with demand projected to outstrip easily available supplies over the next decade, resulting in increasing production costs for manufacturing industry.

Sourcing for raw-materials, components and semi-finished goods will be sourced from more countries, and companies will continue to expand the geographical regions for sourcing raw-materials and components required in their own manufacturing.

Change in global logistics management landscape- As the consolidation of the logistics industry will continue, and logistics service providers will seek economies of scale to minimize the unit costs and broader service offerings to satisfy the requirements of their global clients.

Increase in regulatory pressure- Over the next decade...
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