Gartner says developing supply chain can help to achieve global scale
Gartner has reported that supply chain leaders will play a crucial role as companies capitalize on the explosive growth in emerging markets.
Emerging markets have been identified as the primary business growth area for the next century, and Gartner said that organizations with strong demand planning capabilities and segmented supply strategies are better positioned to capitalize on market opportunities, as well as to mitigate risks.
Mike Burkett, Research VP, Gartner, said, “Emerging markets present huge opportunities but come with unique characteristics and challenges due to the constant thrust for business growth, volatile demand and low maturity of supply chain processes. The ability to plan demand better is a tremendous advantage, as accurate demand plans help supply chain leaders align end-to-end supply chains correctly, and forecast predictable outcomes and profitable responses to demand.”
While CEOs recognize the critical nature of the supply chain to this global expansion, they are split on their view of its readiness. Fifty-one percent of executives surveyed see globalized supply chains as more complex and brittle now, with the balance feeling that they are more resilient than at any time in history. Gartner believes the solution in both cases is to develop supply chains that can achieve global scale while serving the needs of both developed and emerging nations.
Supply chain organizations are responding to the opportunity afforded by emerging markets by working closely with their sales and product teams to understand the differentiated product and service needs of these markets. Leaders are designing the right supply chain organizations and networks to best serve these needs within a broader global supply chain strategy.