Institutional Affiliation
Trends Changing Supply Chain Management
From my perspective, the two most important trends in supply chain management today are globalization and outsourcing. The trade scene is hastily becoming multinational. To a large degree due to developments in communications, globalization is drastically influencing the style in which business is overseen and performed everywhere. No sector of a business is influenced more by the inclination to an international business setting than the supply chain (Hitachi Consulting, 2009). Making, dissemination, sourcing items, billing and returns have altogether been significantly impacted by the stretched coordination of a worldwide consumer and provider base.
On the other hand, multiple firms recognize that outsourcing fragments or the majority of a supply chain can be favorable. With commercial center developments around data media and structures, cost and nature of international assembling and dissemination, and item plan aptitudes, companies are gaining extra cooperative energies by re-appropriating all or some of their supply chain (Hitachi Consulting, 2009). There can be huge financial advantages from redistributing the entire or part of your supply chain undertaking, yet lacking the correct frameworks, forms, or hierarchical administration structure the danger to progress can elevate to alarming dimensions.
Amazon is one example of companies that have been impacted by both globalization and outsourcing. Being a retail firm that serves diverse customers from all over the world, Amazon has experienced immense growth due to globalization. It is one of the most profitable businesses alongside Google, Apple, and Facebook. In terms of outsourcing, Amazon has been impacted as it buys most of the items it sells through its subsidiaries from other manufacturers and sellers. This enables the company to determine the pricing and the shipping methods to their customers.
Hitachi Consulting. (2009). Six Key Trends Changing Supply Chain Management Today: Choosing the optimal strategy for your business.