Companies will exploit well-performing existing tangible and, especially, intangible supply chain assets to ride out the financial crisis and prepare for recovery, according to a report from Manufacturing Insights that lists its top 10 predictions for global supply chains in 2009. Also among the top three predictions: modern supply chain organizations will put expenditure budgets under greater scrutiny and new investments will be cost-savings-focused, requiring shorter payback periods; and companies will "right-size" their supply chins for profitable proximity and take a total landed-cost approach to product sourcing.
These predictions focus on areas of continuing challenge for manufacturers, such as global supply network sourcing, asset utilization, customer relationship management, and total supply network cost--while being framed by the global economic slowdown.
"In 2009, we expect to see a very strong cost and customer focus in supply chain behavior and spending. Continuing supply chain complexity will drive investments in optimization, modernization, and risk mitigation," says Simon Ellis; supply chain strategies practice director at the research firm.
Source: Manufacturing Insights