As new sourcing options become available across the globe, companies can greatly benefit from low-cost supplies and the ability to make their supply chains more flexible by sourcing from a number of different vendors around the world. But with these new opportunities come greater logistical hurdles: managing trade laws, accounting for events that could derail important shipments, and ensuring that current systems are able to accommodate exchange-rate fluctuations, language differences and other issues. It's a larger undertaking than many companies realise, and is costing businesses billions of dollars annually, according to Aberdeen Group, a research consultancy.
To find success with global supply chains, executives need to integrate operations both vertically and horizontally, creating a centralized operation that gives supply-chain executives insight into all areas of the chain, from product design to manufacturing and distribution. This requires improving the accuracy of product data, sharing real-time logistical information with key stakeholders, and creating greater flexibility and more accurate demand forecasting. It's a tall order, but one companies must undertake if they aim to expand their business in the future.
