Topic of the day
Preparing for the Future
As we have seen this week, there are a number of global and industry trends affecting the technology sector and its companies’ supply chains. To be successful in future, these companies will need to be ready to adapt their business approach and supply chain strategy if they are to stay on the crest of these trends, and not miss the next wave of change.
Staying ahead of the curve While manufacturing long ago shifted to Asia, now the offshore contract manufacturers, like HTC, Huawei and Acer, have become brand names and global players in their own right. In the meantime, manufacturing cost pressures keep driving the search for new, attractive geographies, such as China’s western provinces and South East Asia. In parallel, the epicenter of consumer demand is shifting to new growth areas in Asia, Latin America, the Middle East and Africa.
Topic of the day
Preparing for the Future
Simultaneously, recent events – such as fuel price fluctuations, geopolitical unrest and natural disasters – have demonstrated the vulnerability of complex and far-reaching supply chains to external forces. Some companies, for instance, are considering bringing production back from the other side of the globe and closer to customers in Europe or North America, with less risk of disruption to the supply chain.
The drive for operational efficiencies and risk mitigation is also leading to another innovative way forward, namely, collaborative supply chain solutions.
Topic of the day
Preparing for the Future
In addition, understanding the fundamental needs and differences in customer buying behaviors allows targeted alignment of service levels and is the blueprint for a new business model for corporate supply chains.
Companies with the vision to perceive market shifts and changes over the horizon, and understand the importance of adapting their business and supply chain strategies to meet these challenges and opportunities, will be the winners of tomorrow. They also understand that this task is much less daunting if they have a supply chain partner with the same vision.
