Today’s global supply chains have resulted in new logistical
complexities for many manufacturers and retailers – some anticipated,
others unforeseen. Whether sourcing materials and parts offshore or
outsourcing manufacturing and assembly, the reality is that global
supply networks carry higher risk and may present new business
challenges and incur costs not fully calculated in advance. Offshoring
challenges can range from variable lead times and the difficulty of
collaborating with remote business partners and suppliers, to more
complex logistical processes and the need to comply with diverse
multi-national trade regulations and agencies.
David Johnston, JDA Software’s senior vice president, manufacturing
and wholesale distribution, notes: “Too often, ad hoc attempts to
cope with increased transit times, more complex logistical processes,
and global trade compliance issues lead to uncoordinated decision
making, operational inefficiencies, higher costs and, ultimately, to
erosion of sales, lower profit margins and decreased customer service.
Global supply chains are inherently fragile, with any disruption
potentially resulting in lost business and poor reactionary decision
making. That’s why companies seeking to improve global supply chain
visibility and agility need to take a synchronized, cross-functional and
strategic approach.”
Johnston highlights four key strategies – based on industry-leading best
practices – which companies can implement to help achieve more reliable,
smoothly functioning global logistics operations and trade management
networks, while also helping to reduce risk and improve supply chain
visibility.
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Build an Integrated, Agile Global Supply Network. Achieving an
end-to-end supply chain that’s driven all the way through raw material
procurement requires the linking of cross-functional operations such
as sourcing, purchasing, logistics, distribution, sales, customer
service and finance to enable timely information flow and
collaboration. The goal is to create an agile, resilient and
responsive supply chain fully optimized to meet corporate goals. By
establishing an interconnected global network in which all
participants plan from a single synchronized view of demand, companies
can improve business performance and customer service, as well as gain
the flexibility within their supply sourcing network to quickly make
strategic changes to leverage worldwide production capacities, foreign
trade agreements and tax compliance regulations.
