Move beyond traditonal supply chains

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How Global Supply Chains Add Value?


Consider this if you are a typical company your imports and exports have grown at least 20% over the last 10 years.
If you are one of those unique companies who prefer to deal only with local suppliers, then all that is happening is that there is a layer of rent-seeking middle-person who is importing on your behalf and Material flow to you.

Origination of Global Supply Chains

When the concept of the supply chains originated in late 70s, most supply chains were still national – while some were moving towards a regional structure. In fact, it might be fair to say that the Pan-European regional expasion of companys’ supplier footprint led to the origination or at least quick adoption of the concept in the business world.

Global Supply Chains

Early Global Supply Chains

Here was a practical solution to a real business problem, created by practical people working in the consulting industry. That was before everyone else, including the academia jumped on the the band-wagon and over-complicated things for their own purposes.

However, the purpose of this post is to explore what happened to supply chain when the supplier network moved from a regional structure to a more global structure.

Global Supply Chains Expansions

Today, hardly a company exists (at least not a large one) which does not have suppliers located outside its immideate regional footprint. In fact even the smallest company will have suppliers spread around the world, and are not actively seeking direct supplies, rather than buy through middlemen who barely add any value.

No wonder the supply chain models of 80s and 90s are finding it very hard to cope with the globalisation of the Material flow. If you are reading this – what is your view on the matter?

Evolution of Global Supply Chains

Do we need to move beyond Global supply chains (And please don’t talk about Procurement network or supply clusters – they are really same things in a more expanded format, merely semantics in most definitions) – into the realms of something totally new.

Or, do we need to just expand the reach of the current supply chain models? Or, do we need to expand the supply chain models? Please express your opinions below or by email to me..

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About the Principal Author of Outsourcing 3.0 - Vivek Sood

Vivek Sood - Author Outsourcing 3.0

Today, Vivek and his partners are among 20-30 people on Earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in the most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek’s journey:Started in 1983 as a merchant navy cadet at 18 years age, and worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.

  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in the supply chain – against all odds, sought out the co-inventor of the supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue-chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path-breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities, and libraries worldwide.

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