Prediction of complexity reductions for future global supply chains
Keeping today’s complex global supply chains well-oiled is not an easy task. The more extensive the network, the more uncertainty and risk there is involved in the management process. In a recent article, it is argued that the future supply chain will become more local, cheaper, smaller and faster. This view is based on the technological developments that are entering the market such as 3D-printing as well as the use of intelligent robots and open-source hardware. For example, using 3D-printing and low-cost robotic assembly, nearly any solid component can be produced much more efficiently. With more production taking place locally, intermediaries such as sub-assembly providers can be removed from the supply chain, decreasing its complexity. The most intriguing part of this story is the prediction that these changes are going to be taking place not in 10 years, but rather within the next 5 years.
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Are Apple’s suppliers heading for a downturn?
At the moment, Apple’s suppliers are benefiting from solid iPhone sales. LG Display, for example, generates approximately 20% of its revenue by selling screens to Apple. Taiwan Semiconducter Manufacturing also recently signed a deal with Apple to become the company’S major supplier of chips beginning next year. The two companies, along with Hon Hai Precision, Apple’s top assembly partner, saw a rise in stock after Apple announced a sales increase of 20% over the last three months compared to the year before. However, the future of the company’s chip and screen makers may not be so rosy. One reason for this bleak outlook is that customers in developing markets are turning toward older Apple products which are of course cheaper than the new products. Furthermore, Apple’s industry leading margins are expected to decrease as the company is expected to bring a lower-cost iPhone to emerging markets like China and India. This could create cost-cutting pressures on Apple’s suppliers.
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Attention all procurement professionals…!
Last month we wrote about the increasing demand for supply chain managers. As a result, new concentrations in the field of supply chain management are being introduced at universities across America. This week it was announced that demand for procurement managers also continues to grow. Compared to last year at this time, job vacancies in the procurement and supply chain fields are 50 percent higher. The article highlights certain aspects recruiters are looking for in procurement professionals and include relationship development skills, experience with returns processes and stakeholder management skills. This seems to be an optimal time for job seekers in the fields of procurement and supply chain management.
Click here to read the full article.
Have a great weekend!
