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Are Multiple Supply Chains Important Survey Response 2

Written by: Jon Hansen

Article Overview: A 2006 Report made the following statement: "Designing and operating multiple supply networks to meet the needs of specific market segments--supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth." Based on your own experience is this an accurate assessment? If yes, why? If no, why?

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Are Multiple Supply Chains Important Survey Response 2

Mark,Vice President and Managing Director, Transport Company, Thailand

Your question is to broad. Even if i categorize it to a customers needs it sounds inefficient and illogical.

One of your current answers states its hard enough to manage 1 supply chain let alone multiple.

My Response:

What is interesting is that this "assessment" appeared in a report that was written by the Institute of Supply Management (ISM), CAPS and AT Kearney last year. Much like you, I shared similar sentiments in part 3 of of my 7 part series Dangerous Supply Chain Myths (contact author for URL Link).

There are too many basic challenges that still need to be met at the operational level.

This being the case, why do you think that the report's authors highlighted this as an important issue?

Mark's Closing Comment:

Well its not like multiple supply chain networks dont exist now. Many fortuen 500 customers run multiple supply chain networks. Look at the automotive vertical whereby they do run geographically different/multiple supply chain networks and in some cases have had to institute a 4PL player to manage the multiple networks. The deliverables are questionable albeit i think there is a solid role for 4PL's.

Other High Tech companies such as AMD/Spansion also run multiple global supply chain networks and as a previous provider to those companies on logistics and transportation as an outsider looking in they would be better suited to a single supply chain network versus multiple in my humble opinion.

I think the authors are highlighting multiple networks as a subject shud be tabled and addressed as potential possibility now rather than later. Ultimately its something being practised now but 1 Global Supply Chain Network would be my preferred option for the sake of simplicity, cost effectivenesss, management and deliverables.

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Article Tags: 4pl, deliverables, global supply chain, institute of supply management, ism, logistics, managing director, multiple networks, myths, operational level, outsider, preferred option, sake, sentiments, simplicity, single supply, spansion, supply chain network, supply chain networks, transport company



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