Developing Strategies for Success
2015 is becoming the year of the merger, which means industry consolidation, megamergers and industry consolidation across most supply chains. This trend is driving many companies to develop exclusive, integrated, competing supply chains. Companies that have advanced this practice are Apple, Samsung and Toyota with end to end integration serving the final customer. The key drivers of this type of supply chain are cost transparency, value creation, integrated business systems and innovation. Is your company on top of the trends that shape your supply chains?
To gain control of supply chains, you need to have a good understanding of the trends that will shape supply chains in the coming years. The 10 megatrends I’m seeing are:
- Supplier relationship management is becoming a core competency
- Value creation is more desired than price management in the future
- Innovation transfer is required for the success of the entire supply chain
- There is a movement toward portable manufacturing
- Contingent work forces are becoming more prevalent in business
- Internal and external collaboration is a business requirement
- Business strategy alignment will be required between all links in the supply chain
- Distribution, logistics and asset management will be a bigger priority
- Life cycles are becoming shorter
- Supply chain and manufacturing agility will be required to dominate competition
The supply chain management function has been evolving to keep pace with the changing trends. I’ve seen many companies struggle to keep up—those who make the investment to develop skills and improve processes succeed. The diagram below shows some of the key trends that have impacted and evolved supply chain management.
As I see it, it is essential to move from a customer/supplier relationship to an integrated supply chain focus. While some companies have made the leap and lead their industries, others are still back in the price management focus.
Can you make the leap?