Global Manufacturing Outlook 2013
The Economist Intelligence Unit’s Global Manufacturing Outlook 2013, written on behalf of KPMG, is out now. It is based on an international survey of more than 300 senior executives from five industries. The report demonstrates that competitive advantage can be secured by enhancing supply chain networks for efficiency and innovation. Particularly, it is demonstrated that (1) many manufacturers are planning mergers or acquisitions to seize opportunities in global markets, and they plan to exit non-profitable, non-core business units and product lines; (2) many manufacturers are building network relationships with suppliers to become more responsive to market changes; (3) supply chain visibility beyond tier-1 partners can have a positive impact on agility, resilience, and performance; (4) supply chain partnerships, rather than in-house efforts, are increasingly seen as an important source of innovation; and (5) manufacturers are investing in both breakthrough and incremental innovation to ensure competitiveness. In sum, the report highlights the importance of supply chain management for manufacturers.
Agility is crucial in a global supply chain. When one link is disrupted you can’t afford to have everything come to a stand still. Your partners are an integral part of the supply chain and what they do and how they operate directly impacts your end game.
I agree that enhancing resilience is a crucial strategy in today’s globalized supply chains. Yet, depending on various factors, such as duration of the disruption, centrality of the flow unit on the disrupted link etc. I argue, in accordance with various other authors – including this bloc’s host – that robustness maybe a more efficient strategy than agility.