Chapter 1: Supply Chain
Management
, What forces are driving the rate of
change?
1. Globalisation
Has led to a more competitively intense economic and geopolitical
environment
Time and distance has become compressed
The main challenges for supply chains
o Volatility of supply and demand
Acts of terrorism has implications on the flow of commerce
Contamination of food products from China can cause an
interruption in the flow of products
Natural disasters have an effect
o Shorter product life cycles
Technological companies are at a threat
Provides inventory management problems for supply chains
o Blurring of traditional boundaries
To maintain profitability, companies have to outsource
2. Technology
Major impact on the supply chains as a facilitator of change as companies
have transformed their processes
Individuals and smaller organisations can connect to the world’s “knowledge
pools” and can create collaboration in supply chains
Outsourcing has been enhanced by technology
Flow of commerce has become multidirectional
Management
, What forces are driving the rate of
change?
1. Globalisation
Has led to a more competitively intense economic and geopolitical
environment
Time and distance has become compressed
The main challenges for supply chains
o Volatility of supply and demand
Acts of terrorism has implications on the flow of commerce
Contamination of food products from China can cause an
interruption in the flow of products
Natural disasters have an effect
o Shorter product life cycles
Technological companies are at a threat
Provides inventory management problems for supply chains
o Blurring of traditional boundaries
To maintain profitability, companies have to outsource
2. Technology
Major impact on the supply chains as a facilitator of change as companies
have transformed their processes
Individuals and smaller organisations can connect to the world’s “knowledge
pools” and can create collaboration in supply chains
Outsourcing has been enhanced by technology
Flow of commerce has become multidirectional
