With megamergers and industry consolidation, many companies are transforming their supply chain through key drivers like value creation, cost transparency, innovation and integrated business systems. Megatrends are transformative, global and are large forces that lead to definitive changes. These are necessary for companies and businesses to put their best foot forward keeping in mind the changes and innovations that the industry undergoes.
Supply chains are growing to be exclusive, integrated and competing in terms of what they offer and are completely redefining themselves. While some companies use megatrends to better understand the global markets, others are using them to develop their core competencies.
There are 10 such megatrends that can’t be overlooked in procurement and supply chain management. These are:
- Core competency of supplier relationship management
- Considering price management in the future, value creation is more desired
- For the success of the entire supply chain, innovation transfer is required.
- Movement toward portable manufacturing
- The contingent work forces are ruling the business
- As a business requirement, it is important to have internal and external collaboration which will help companies to make use of virtual manufacturing and plug-and-play factories through value-chain partners.
- Among all the links in a supply chain, business strategy alignment will be required.
- As emerging and bigger priorities, logistics, distribution and asset management will hold the key.
- The competition will be dominated by flexibility, agility, alignment and transparency.
- Shorter life cycles
In order to keep pace with the changing trends, procurement has been evolving and transforming. Many companies struggle because they do not revolutionise in keeping with the changes in the industry in terms of development of skills and improvement of processes. The industry has tremendously transformed from the simple price management and control to sophisticated strategic category management. This has made it clear that the industry is on the path of moving away from category management into supply chain value management.
There is acceleration in trends towards demand and supply management, lean production and shorter product lifecycles and new product development. This is being done to cater to the requirements of customers’ demand.Megatrends have a huge potential and overlooking them can be detrimental to businesses to survive on beating the best in business and gaining the competitive advantage. Not being attentive to megatrends can also lead to declining market share, potential failure and new and more agile competitors.