menu
  • 1.800.734.5351
  • Schedule a Pick Up - 1.800.734.5351 Ext 5

[INFOGRAPHIC] Expert Reveals 7 Supply Chain Trends to Watch

supply chain trends infographic

Editor's Note: This blog post is from SupplyChainOpz. We found it as a great summation of all the things companies must consider when mastering their supply chain. Many studies state that those who can manage the functions with the supply chain, they have a competitive advantage. As a transportation management third party logistics company, we know at Cerasis that transportation makes up a large portion of the costs and efficiencies of any supply chain. Look at these 7 supply chain trends as a guide to better your supply chain today. Contact Cerasis if you would like help in more effective transportation management. 

In this article, Professor Burcu Keskin from University of Alabama will share 7 supply chain trends that working professionals should watch.

As pressure to improve supply chain cost performance increases for many companies, the evaluation and selection of competent suppliers becomes a key concern. Typically, total cost, quality, and delivery performance appear as critical factors in the supplier selection process. However, complex supplier relationships, unreliable sources of material supply, and ever-increasing customer expectations greatly add to the expectations to select the best suppliers and conduct their operations more efficiently.

[INFOGRAPHIC] 7 Supply Chain Trends as Laid out by Supply Chain Expert

Supply Chain Trends

Within this context, a number of supply chain trends have been gaining attention:

1) Customer-driven supply chains

Differentiated customer experiences define the current supply chains. In the past, having a one type product with a long life cycle had been the norm. However, with reduced life cycles, customer-driven innovative products and services have forced supply chains to be flexible and adaptable. The biggest implication of this new imposition on procurement process is that now procurement managers have to deliver suppliers that are cost conscious and timely in their operations but at the same time can adapt to the changing demands of end customers.

2) Connected supply chains

The way we access internet has changed rapidly over the past few years, transitioning from computers to tablets, from tablets to mobile devices, and to “everything.” With “Internet of everything” concept expanding, there are more opportunities to connect supply chains and increase the visibility from order initiation to order delivery. Data coming from different sensors located at different suppliers from their production and transportation operations, carry a lot of information regarding the quality of production process and timeliness of delivery. At the same time, this data may indicate possible issues in the procurement process, regarding product quality and delivery. Monitoring and analysis of this data may provide opportunities to intervene before issues becomes major problems.

3) Risk Management

In the past, many buyers relied on safety stock inventory to mitigate any risks or disruptions to suppliers. However, now with the global supply chains and due to uncertainties over economies, weather, and political situations, new requirements and trends arise to mitigate potential risks. One of these trends, in addition to inventory keeping, is dual/multi-sourcing. Reducing the dependence on a sole supplier is crucial in managing risk.

4) Management of Complexity

Complexity of supply chains is not a fad that will pass rather, the supply chains continue to evolve into networked economies. Hence, managing complexity has become an accepted fact of managing procurement processes. Analysis and optimization of complexity requires a complete understanding of market volatility, fragmented customer segments, globalization, and sustainability. All of these aspects impact procurement processes.

supply chain trends SCM5) Technology Matters

Having a holistic view of information technology offerings for integrating all of the supply chain operations, including procurement processes is crucial in current environment.

6) Rethinking Workforce

With connected supply chains and new digital business models, companies needs to rethink the talent development for successful procurement operations. Unfortunately, the traditional workforce training models do not support the current needs. Procurement and supply chain managers that are comfortable with data-driven decision making and have a complete understanding of end-to-end supply chains will be in high demand. Skill gaps will continue to be a challenge for companies.

7) Total Cost Perspective

In the past, many buyers selected purely based on purchase price and quantity discounts. However, when large amounts of products are purchased inventory keeping and management costs are skyrocketed. Therefore, instead of this one-dimensional perspective (procurement price), now buyers have a multi-dimensional approach to consider all dimensions and impact of procurement on other operations (inventory, transportation, handling, etc.) A total cost approach and data-driven optimization to come up with the best plan of action are the desired ways to attack this problem.
In order to help companies decide objectively to reshore manufacturing back to the U.S. or offshore and see Total Cost perspective for yourself, the not-for-profit Reshoring Initiative’s free Total Cost of Ownership Estimator can help corporations calculate the real P&L impact of reshoring or offshoring. http://www.reshorenow.org/TCO_Estimator.cfm
This article originally appeared at SupplyChainOpz

Other Posts You Might Like:

Adam Robinson
Adam Robinson oversees the overall marketing strategy for Cerasis including website development, social media and content marketing, trade show marketing, email campaigns, and webinar marketing. Mr. Robinson works with the business development department to create messaging that attracts the right decision makers, gaining inbound leads and increasing brand awareness all while shortening sales cycles, the time it takes to gain sales appointments and set proper sales and execution expectations.
Adam Robinson
Adam Robinson
  • Great blog and infographic Adam – thank you for sharing! The Reshoring Initiative can help with the Total Cost perspective.

    In order to help companies decide objectively to reshore manufacturing back to the U.S. or offshore, the not-for-profit Reshoring Initiative’s free Total Cost of Ownership Estimator can help corporations calculate the real P&L impact of reshoring or offshoring. http://www.reshorenow.org/TCO_Estimator.cfm

  • Sandy, I completely thought of the TCO from Reshore now given the last point. SUPER glad you commented! I want to make it a part of that last paragraph using what you put here in your second paragraph, to give more visibility to your statement.

  • Bong Dumaraog

    Adam;
    There’s no mention of vendor development. In as much as we develop our people there is also a compelling need to develop our vendor partners. In the place where O am on right now, thousands of 2PL need to ne developed as solutions provider and not servoce providers only. This should be my 8th item and my mision in this part of the world.
    Do you have some articles you can recommend? I got a copy of The Alliance already and thought of working similar to this model but with the vendors.
    Thanks for making a difference (MAD)…
    Bongd

  • Pingback: Expert Reveals 7 Supply Chain Trends to Watch - Procurement Professionals()

  • Aashish Lowanshi

    1.CIOs are tasked with running two different IT environments at the same time – maintaining the traditional IT infrastructure workloads designed to keep the business running (such as data processing and email) and introducing new IT infrastructure built on mobile and cloud applications that help grow the business.

  • Aashish Lowanshi
E-Book: Download the Ultimate Guide to Last Mile & White Glove LogisticsDownload Now

Join 20,000 Plus Subscribers!

To subscribe to our blog, enter your email address below and stay on top of things.

 

Subscribe!

Send this to friend