The dynamics of the global market have changed immensely in the last 20 years. The occurrence of smart technology, the impact of the global recession, changing economic conditions of powerhouse players, and other variables have created a huge paradigm shift that has directly affected the supply chain industry. It’s likewise worth noting that with the different standards of living nowadays, the market’s demands have evolved, too; therefore it is more essential than ever that businesses constantly adapt to remain competitive and profitable.
The “March of Consumerism” has created a fiercely competitive landscape; as supply chains continue to extend across the globe so as to be able to cater to demands from literally everywhere, maintaining versatility and responsiveness in supply chains will be key. If companies do not have a strong and adaptive supply chain system, their profitability potential may be limited, and eventually, they risk being overpowered by their more strategic and organised competitors.
The consultancy service providers also cite the issue of “where to get materials from.” They point out that changing factors such as risk, cost, logistics, and others all affect the ability of enterprises to determine where exactly to get economical whilst good quality materials for production and other operational needs that are not too competitive and in-demand with other businesses.
A further hurdle is the overabundance of information available to enterprises. The amount of data available within the supply chain industry can be overwhelming. More often than not, instead of being a source of enlightenment to ensure the progress of operations, too much data can complicate matters and create confusion as to what truly matters in securing the supply chain for consistently smooth and profitable operations. Sifting through information and identifying what is most relevant to the business and it’s customers is a must.
“App-isation” is likewise a concern, despite being intended for good. Technology that promises to be intuitive and agile is always an attractive provision, but placing too much reliance on apps can present a bounty of risks pertaining to privacy and security. With orders carried out and sensitive information exchanged in the digital realm, there’s a high risk of being exposed to certain threats that can compromise crucial data.
And the last hurdle is the “first priority market” system; this is the trend among suppliers to favour a particular market over others. This is the case with beef nowadays; there’s a global battle for beef and leading sources are favouring China, which is doing its best to meet the staggering demand of locals. This has made the price of beef for other buyers exceptionally high, and this trend has also managed to influence the price of other meats such as lamb and mutton. Such a system can create a difficulty for certain enterprises to support their operations and make their products more accessible. To remedy this, they need to re-evaluate their supply chain management system so demands can be met without hiking up prices.