As retailers worldwide are aware, the only thing that’s constant about demand is its unpredictability; although that seems like an oxymoron, the truth is that demand is fickle and it always has been. Global and social conflicts, together with shifting demand patterns and prices cause a certain amount of volatility that impacts on supply chain logistics worldwide.
Demand is also becoming more widespread as the middle class in countries such as China and India are expanding rapidly. This is also true of South American economies, which are shifting from commodity-rich export countries into more diversified, fast-growing markets. This is largely due to the rise of e-commerce, impacting on both B2C and B2B supply chain solutions.
Meanwhile customers have been empowered by the information and access the Internet gives them. There is rising demand for greater supply chain visibility, and better service at more affordable prices.
What this all means is that there’s a growing need for a fundamental change in global supply chain management.
Of course, building a flexible, responsive, and resilient supply chain is not without challenges, especially considering how the global logistics industry has evolved in the last decade. So what’s the answer? Increasingly, it seems that creating a truly open and global network for exchanging information and those involved is the way forward when it comes to supply chain strategies
When it comes to the global logistics industry, there is a real need to transform the sharing of information, rather than the highly established process of moving goods. Innovation needs to come from an independent network that exists only to help customers and their ‘suppliers’ such as trucking, freight forwarding, shipping, and customs to share cargo information in the cloud. So the rethink is more about how visible information is, rather than the disruption of shipping and logistics.
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