Supply chain trends - 2007

January 11th, 2007 at 08:11am David Bush - Iasta

Looking through an article on World Trade Magazine, which had a section written by PRTM partner - Steve Pileggi, I noticed a description of six predicted supply chain trends:

• Continued growth in air freight as the standard way of managing global logistics;
• Broad national pressures in the U.S. for greater regulation on trucking for safety reasons;
• Push for customizable distribution that takes more touch points out of factory-to-consumer distribution;
• Greater emphasis on cargo security/screening as well as a push for security measures in public transportation;
• Further consolidation in semiconductors, network equipment, storage—essentially, those technologies that are becoming more commoditized;
• Continued erosion of middle management due to baby-boomer retirements that drive the market for professional management services (contracted expertise).

Following that up, was an additional item added:

Strategic sourcing gets, well, strategic. Smart companies get serious about sourcing from fewer vendors and the focus is not just cost. Vendor considerations such as time to market, quality, and technological sophistication move to the head of the list. Companies stop talking about collaboration and actually do it.

This is where a good sourcing process which includes an e-RFx product can be hugely beneficial. Collection and collaboration of large amounts of data can streamline the process of supplier evaluation and ultimately consolidation.

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Entry Filed under: General, Global Supply Issues/Risk, Supply Management Best Practices, Technology / SaaS, e-RFx