Supply chain vs. supply chain

Abstract

It has been said, in this world of virtual corporations, that it is no longer companies that compete, but supply chains. When you look at the model of a corporation today, the traditional vertically-integrated business seems to be a thing of the past. A prime example of this is Nike. They own no factories, trucks or stores, yet are one of the world's most successful retail firms. Today's supply chains reflect this trend in that few firms control the entire supply chain from end to end. Most companies rely on a mix of suppliers, transportation resources, assemblers, warehousing firms and retail outlets to bring their product to the market. As a result of this mix of outside firms, it is often difficult to know the impact of changes or poor performance on the supply chain. What is needed is a tool that can give visibility to the entire supply chain and that allows for the testing of numerous what-if scenarios, such as outsourcing, consolidating vendors, collaborative planning or implementing e-business. Only with this capability will you and all of your supply-chain partners be able to effectively compete against your competitors' supply chains.

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