Supply Chain Management: Where is it going? (2)

Filed in archive Point of view on February 1, 2006

Here comes the second article from the series "Supply Chain Management: Where is it going?" , As I mentioned before, I'm going to show a big picture of the future of supply chain management. The analysis is based on the opinions of the experts in the area and market trends.

Impediments to supply chain evolution.

Shippers want to be lean with compressed supply chain time and with fewer inventories, but there are obstacles to be dealt with. Transport and logistics infrastructure investment are needed both internationally and domestically. China has needs beyond the immediate port areas. The U.S. has needs with bridges, highways and rail equipment. Add the shortage of domestic truck drivers and you have issues that can delay the prompt movement of products at many points in the supply chain. Ocean carriers need to evaluate their ideas of ship sizes and sailing schedules with their customers needs for faster delivery. Increased security throughout the international supply chain will create situations that slow cargo movement; these will need additional technology at ports and other areas. Key to resolution of these hurdles will involve determining who all will pay for the needed investments and changes and how it will be paid.