Recent Trends in the Supply Chain

The supply chain is ever changing process and the businesses have to observe the trends in the supply chain and follow these trends, otherwise the business will be out of the competition.

The following are the recent trends in the supply chain:

With the globalization of the economy the companies have increased cross border sourcing. The companies are collaborated for parts of value chain with low cost providers and shared service centers for logistical and administrative functions.

Demand Driven Supply Chains:
Demand forecasting based on the historical data and the statistical tools is of no use in the today’s business environment and the companies need to change from supply chain driven by forecasts to a demand driven one. Empowering supply chain with the right visibility and tools to quickly and effectively respond to demand changes provides benefits such as accurate order promising, lead time reductions, and lower inventory levels and risk.

Collaboration And Coordination:
Today lot of companies are outsourcing their logistic activities to the third parties to focus in the core business activities. There should be collaboration and coordination between the supply chain partners because with the effective and efficient collaboration the partners can explore the options available to make the decision, can develop a shared understanding and the mutual commitment to the resolution.

Higher Consideration For Software:
IoT software developmentAnother recent trend in the supply chain is use of the software. The usage is growing as they can serve a unique purpose and offer capabilities beyond what’s available in house. With the use of software the information is made available instantly to unlimited employees and partners around the globe.

These new trends in supply chain management shows, how effective this can be improving a business.