If current trends continue, 2011 is shaping up to be a more aggressive year for supply chain managers. Emergence from a recession traditionally brings about changes in corporate sentiment, shifting tactical direction from a focus on cost containment and liquidity to business growth and expansion. This typically leads to a higher volume of mergers and acquisitions.
Through this transition, supply chain managers will be asked to grapple with rapidly changing market conditions, a growing base of sourcing partners, new and expanding markets, and the synergy and consolidation issues that come with higher M&A activity.
Thankfully, supply chain theory and technology has been adapting to the need for change in a rapidly expanding global marketplace. Supply chain managers now have more tools and options for cost-effectively matching inventory levels to future demand, at rates more affordable than ever before.
The underlying goal of an effective supply chain has not changed, and will not change. That is to minimize total landed cost while maintaining a high level of customer satisfaction. But the methods and tools used to get there will change, and will be part of the one of the primary trends of supply chain strategy in 2011: using targeted corporate investment to improve supply chain efficiency, increase productivity and improve demand forecasting.
The 2011 supply chain also will have to remain highly flexible so that it can quickly adapt to a volatile and changing global trade environment (from currency and fuel cost fluctuations to overnight changes in tariff and raw material costs). Much of this has been true for decades, but the speed with which changes will occur is what will be different in 2011.
The impact of emerging global markets and an expanding global middle class of consumer will keep companies pushing the global trade envelope — and the velocity of the movement of goods and data throughout the supply chain will have to keep pace.