The tech industry is undergoing significant disruption resulting from a flood of innovation of devices and software and the speed of the supply chain to deliver that innovation to customer is coming under question in a report (February 2015) that you can read when you click here. That report states: The simple fact that supply chains in the tech industry are significantly more global than in many other industries – and as a result often more complex or fragile – increases the industry’s exposure to risk.
The tech supply chain has some monster companies like IBM, HP, Apple, Avnet, TechData, Arrow and many others who constantly strive to perfect their supply chain operations to drive efficiency and reduce waste. The report was commissioned by another monster company and global brand DHL.
it calls out three big challenges arising from uncertainty and ambiguity in the tech sector supply chain:
- Shrinking lifecycles and warp speed
- Emerging markets and the rise of consumption
- Supply chain visibility gaps
The report claims that supply chains that operate in a ‘linear and sequential’ fashion are suboptimal to address the challenges above. The ‘gap’ is in the information flow (see illustration) that shows while the physical movement of materials is optimal the flow of demand-driven information is not comparably optimised for demand-driven fulfilment. In B2C where spontaneous demand and buying occur that has big implications. In B2B less so with formal procurement processes. Anyway you look at it this is bread and butter for communication and collaboration and that will be machine to machine and good old fashioned people to people and something I write about in the books that I have published.
Of course in any report of this type you have consider where vested interests lie yet it does bring to attention the complexity of tech supply chains and further opportunity for efficiency.