Oracle Supply Chain Management Blog

Supply Chains are Shifting: Get ready for tomorrow!

March 5, 2013 By: Stephen Slade

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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