A few years ago, it would be normal to find a couple of articles in logistics magazines about the importance of supply chain management and how it was wise to invest some resources in developing strategies to enhance the effectiveness of such management in order to maximize the impact the organization is making in the market when it concerns to logistics and their operation. Today it seems impossible to find an online publication or magazine on the topic that doesn’t dedicate a hefty amount of space towards discussing the supply chain, its impact and the effects of not dealing with issues that may slow down the way it operates. This sudden attention to this particular area is perhaps the result of analysts identifying supply chain management as a critical area in the success of any company in today’s globalized world.
Something else to keep in mind in the fact that this doesn’t just apply to companies in charge of the production of tangible goods, but pretty much any type of company providing the public with products or services.
What makes a supply chain complex? Is it a bad thing that supply chains are becoming more and more intricate and complicated as time advances and a market filled with customers that demand more each day puts pressure on them?
Supply chains by definition are complex processes, and that is mainly because there are so many moving parts and variables that ultimately define where things go from there. On top of that, you have to consider that sales, distribution, procurement, and productions while being internal factors that influence the supply chain, are not isolated from external players like suppliers, customers and ultimately the market itself.
Going back to something we mentioned earlier, today’s customers are not the same people that companies dealt with 15 years ago. Clients today don’t want to just spend less time making decisions about buying products but they also want to know a lot more about what they are purchasing and all kinds of information that has to do with the product itself.
One of the reasons why this is a reality probably has to do with the age we are living in and how information has not just become very valuable, but also easily available for those who know how to pool their resources together. Perhaps this is the reason why the big date has become such a big deal in the world of logistics and why the companies who care and invest in these types of solutions will always be those that stand out in a crowd and that is truly successful in the world of logistics and customer satisfaction.
Today’s company must understand customers more than ever before and they have to live in a world where their relationship with the client is a lot closer as they are no longer number in a chart but actual people who cares about what they consume and about finding out the intricate details of said products and services.
Another aspect that branches of more demanding customers is probably the growth for a need in customization and tailor-made solutions for clients. People are no longer satisfied with products that are either high-quality or affordable; people today do not feel they have to sacrifice one for the other and on top of that, they also care about service more than even before. The birth of tailor-made services has raised the bar for companies, and especially in the world of logistics, where companies no longer use one-size-fits-all solutions but instead cater for the needs of customers and offer them services that can accommodate the size, needs, and preferences of their particular situation.
Offering a variety of products today no longer satisfies companies, as they also want those products to circulate and bring new alternatives to the market at staggering pace. Short life cycles are a reality of the market and something like a computer becomes replaced by a newer model in a matter of months. A situation like this places a particular stressful strain on the supply chain and aspect that complicates things, to say the least. This aspect is probably one of the most influential driving forces of logistics in today’s market.
Never have we seen supply chains that are so spread out through the world. It seems that sometimes getting something from the other side of the world makes much more sense than producing local, and that is why globalization is such a big deal when considering the aspects we mentioned earlier. It is important that as the world becomes smaller so to speak, the reach of the supply chain and its effectiveness must expand like it never has before.
If you want to read more great articles on logistics, the supply chain and everything related, check out our publications at David Kiger’s Blog today.
* Featured Image courtesy of David Bartus at Pexels.com