- Businesses responding to supply chain bottlenecks can gain a competitive edge in the market
- However, a collaborative approach may be necessary for more sustainable improvements to supply chains
- A proposal for an independent third party to collect data and develop industry forecasts
Summary by Dirk Langeveld
With supply chain bottlenecks affecting many companies, businesses that are able to improve how they acquire materials stand to gain a competitive advantage. However, a recent article in Forbes suggests that a more collaborative approach may be necessary for more sustainable improvements to supply chains.
Supply chains have traditionally been set up to focus on efficiency and low costs. The current challenges have elevated the importance of supply chains in business strategy, as companies take steps such as diversifying suppliers, looking to regional sources to minimize transportation disruptions, and increasing inventories.
Marco Annunziata, former chief economist and head of business innovation strategy at General Electric, argues that a lack of coordination among companies will only exacerbate supply chain problems. With these issues likely to persist, he says the situation offers an opportunity for greater collaboration to create stronger and more resilient supply chains.
- Flex, a global supply chain and manufacturing solutions provider, proposes an independent third party to collect data and forecasts to assess supply chain issues
- This approach could allow the development of more accurate demand growth forecasts while minimizing disruptions, such as businesses creating excess demand for certain products
- This approach would aim to protect companies’ sensitive information but also allow industry-wide access to crucial data