Supply Chains are Shifting: Get ready for tomorrow!

       

With the Dow approaching new highs and the resulting market optimism, there are several significant factors surfacing today that supply chain managers need to pay close attention to.

·         * According to a recent Accenture study, "Emerging household incomes are expected to increase by $8.5TRILLION between 2010 and 2020". Adaptive supply chains will need to react accordingly to response to the potentially 3Billion people entering the middle class (Read Prestowicz “3 Billion Capitalists”).

·         * There are 117 emerging market companies in the Fortune Global 500, a Six-fold increase since 2000 (Log.Mgmt, Feb’13, p.43). The leading firms entering top tier markets will be previously unknowns.

·         * The Panama Canal expansion will open added Gulf port capacity for east coast markets.  Shipping hubs will shift into more complex networks optimized around best-costing and pricing arbitrage

·        *  Cloud will be a dominant technology in small-to-mid sized business.  Factories will be constructed in rapid time with limited IT infrastructure, depending on the cloud for its IT/SCM services.

·         * Rising wages in China make other South Asia markets more attractive. Companies will need to pick-up and move and outsourcing will be a major focus. Supply chains must be adaptive, agile and reactive to remain competitive.

Is your supply chain properly tuned for the demands of tomorrow’s economy? Maybe it’s time for a health-check to make sure the right tools are employed.

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A Blog about how Oracle helps organizations transform their supply chains into more holistic and integrated value chains that cover the three key operational pillars; Demand, Supply and Product.

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