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Globalisation causing sluggish supply chain management

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Globalisation causing sluggish supply chain management

Thursday, 03/7/2008 05:24
Rapid globalisation is causing a similarly rapid deterioration of supply chain flexibility, it has been suggested.

Figures from the sixth annual Global Supply Chain Trends survey, published by PRTM, found that over half of respondents said that they do not have the ability - in house - to manage their entire supply chain including foreign affairs.

Gordon Colborn, lead director at PRTM's UK arm, said: "This is an indication of how difficult it is to globalise without having a solid operational strategy in place, and a tactical framework against which to execute.

"Even companies with significant collaboration experience are struggling to develop and cultivate the right management skills to deal with the complexity resulting from working with multiple partners around the world."

There are several factors currently tied in to better managing a multi-national supply chain, with the most obvious at present being the rising costs in fuel.

If components for a product must travel great distances then clearly this will be the most direct way to cut costs in the supply chain.

Other demands regarding supply chains at present are those suggesting they be green, as there has been somewhat of an explosion in interest surrounding green supply chains.

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