The best companies in the world leverage all that the global supply chain has to offer – understanding what they do best, and where they need to call on another’s expertise to fill in the gaps. Engaging in our now agile global supplier ecosystem, however, is a challenge that requires a more holistic, strategic approach than years passed to handle the increasingly complex networks that can span multiple entities across multiple countries to create just one product.
For instance, to remain efficient, many companies have put a lot time and energy into creating “leaner” logistics operations that are both responsive and cost-effective. They’ve learned to operate with very low levels of inventory—a plus that many are starting to understand could impose real risks on their supply chain, if implemented alone.
A sound supply chain management system, however, can bridge the gap of major business functions such as logistics, sourcing, and procurement within and across companies into a cohesive and high-performing business model.