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Supply chain sector ‘needs new global approach’

Thinking local simply won’t due for supply chain operations anymore. With the shift of manufacturing to China, among other changes, all supply chains worldwide need to think globally. That’s the working thesis of this article by Nick Hedley, writer for BDlive. The article goes on to share the wisdom of Hamish Brewer, CEO of JDA Software: Mr Brewer said on Tuesday that the “massive shift” of manufacturing capacity to Asia over the past decade had seen a big effect on supply chain planning and execution, with companies having to move products around the globe to meet demand. The dynamics of the global economy had changed, with economic growth in the “mature economies” having slowed while the emerging economies were “still growing strongly”, meaning businesses had to manage “very different strategies” for their operations in different economies. Another change had been the growth of online e-commerce where consumers could “shop across boundaries”. This “shopping across boundaries” is where supply chains need to recognize the change and modify their own practices to benefit from it. The consumer supply chain is no longer dependent on where (geographically) our consumer may be. A supply chain in Africa may be sending orders to America, or the parts needed may come from China, despite that the product is produced in Italy. It’s this diaspora of elements in the supply chain that will dictate the reactions of supply chain professionals worldwide.

About Matthew Kabik

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Matthew Kabik is the former Editor of Computer Aid's Accelerating IT Success. He worked at Computer Aid, Inc. from 2008 to 2014 in the Harrisburg offices, where he was a copywriter, social media consultant, and trainer before moving into editorial.

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