Let’s imagine you’re the chief executive of XYZ plc, a company that makes trainers. The global market for trainers has grown by more than 40 per cent since 2004 to around $55 billion a year and so there’s plenty of scope here. However, XYZ will have to rethink every link in its supply chain.
“The structure of supply chains has changed immensely. Linear supply chains – buy-make-move-store-sell-deliver – have evolved into supply chain grids, with each part in the traditional supply chain replaced by a series of sophisticated networks,” says Puneet Saxena, vice president of industry strategies at JDA Software.
Trainer brands, like others, are increasingly obliged to guarantee integrity and traceability throughout the process. “One of Nike’s core beliefs is that progress starts with transparency and collaboration, and that’s why a decade ago, Nike became the first company in our industry to publicly disclose our factory base,” says a spokesperson for Nike.
Here are five ways to manage the supply chain.