Every economy's ability to compete depends on a steady supply of human capital and talent. When that supply is inadequate, imbalances result, creating serious threats not only to the economy but also to social and political stability and future development. This impact, moreover, extends beyond borders.
Supply-chain managers have a new focus: to move from cutting costs to enabling new processes and making corporations more connected and agile to create value across the entire enterprise.
From siloed behavior to data-sharing and collaboration across disciplines -- that's the journey that companies are making today, as they pass through the five stages of logistics maturity, according to Greg Aimi, director of supply chain research with Gartner.
These are challenging times for emerging markets. China's economy is expanding at the slowest pace in more than a decade, and annual growth in once-booming nations like Brazil, Mexico, Russia, and South Africa has slowed to about 1.5 to 2.5 percent. Look around the developing world, and currencies are weakening, worries about asset bubbles and rising debt are mounting, and foreign direct investment has fallen sharply. This volatility leaves many companies wondering if they are overexposed to the risks of emerging markets.
When the U.S. economy emerged from the recession in June 2009, productivity was rising at a fast clip. Companies had spent the downturn cutting jobs and were lean and efficient. Productivity—output per hour worked—jumped 5.5 percent in the fourth quarter from a year earlier as workers did more with less. But as the recovery has chugged on, productivity growth has stalled, averaging less than 1 percent a year since 2011. Workers were actually less efficient in the first quarter of 2014, producing fewer goods and services per hour than they had during the previous quarter.
To drive robust supply chain performance, many companies put one individual in charge, either a chief operations officer (COO) or a chief supply chain officer (CSCO). With the right leadership agenda these positions can make a major impact on performance. In some organizations, however, the appointment of a COO or CSCO may unintentionally lead other senior executives to view the supply chain as "somebody else’s problem."
For every company that thrives in a foreign market, probably five companies stumble. The complexities of entering a foreign market can result in many strategic mistakes and missteps. Even businesses that eventually "win" in a geographic region can teeter on the edge for years.
Any attempt to apply "lean" thinking to a manufacturer or retailer's supply chain must have merchandise lifecycle plans in alignment with supply chain strategy to succeed, according to the vice president of strategic services at software company JDA.
A recent White House report on big data wonders aloud about the capability of sensors and smart meters to turn homes into fish tanks, completely transparent to marketers, police – and criminals.
The challenge of managing corporate reputation in an era of complex global supply chains is rarely out of the spotlight. From poor working conditions to environmentally unfriendly practices, there are a growing number of areas where brands are at risk from the rise of multi-tier supply chains. A succession of scandals has brought the supply chain to the public’s attention - from horse meat being discovered in the ready meals of UK retailers to factory fires in Bangladesh and exploitation of tin for mobile phones in Indonesia. The culmination of these stories means what was once an internal company process is now very visible to the public and runs the risk of inflicting serious damage on a brand's reputation.