Transportation

Transportation mechanisms are changing

the very options available to cater to

the demands of an increasingly

complex world. There’s greater

sophistication in transportation

options than ever before, from reefer

containers to faster (and larger) ocean

vessels that are a�ecting fulfillment

strategies. The combination of these

trends increases complexity but also

freedom and choice. Taking advantage

of that freedom will be essential to

achieve profitability.

Reverse Logistics

Gartner has revealed that almost 9% of

direct-to-consumer sales, whether sold via online or

through stores, are returned. Given how other sectors

have tended to mimic retail behavior around ecommerce,

it is likely that such returns will become common place

across industries. For a long time, most companies

designed their returns process as an afterthought.

However, it is increasingly obvious that the entire reverse

logistics process has potential to significantly impact the

profitability of industries and customer satisfaction.

Traceability

The provenance of products has

become a serious issue in the

21st century. Widespread global

commerce has opened the door to

counterfeiting goods on a massive

scale. Consumers need to know

whether a product they are purchasing

is genuine or not, and being able to verify

the origin and route of a product will be

essential. This is a complex task, since products

move through many hands these days, from production

to distribution. Ensuring traceability is becoming

especially important in areas like pharmaceuticals,

electronics manufacturing, and apparel.

The Internet of Things

The internet has fundamentally

transformed interaction and

engagement across people and

geographies. New types of devices

are connecting to the Internet at a

fast pace. As this happens, the

spread of geographic and granular

connectivity will be tremendous.

Real-time services like visibility and

transportation will provide even

more detailed, nuanced, actionable

information that ever before. IoT big

data will allow businesses to be

proactive instead of reactive,

anticipating problems in advance,

and enabling preemptive decisions.

Look for more opportunities to open

up, as well as new risks regarding

the management of data complexity.

Globalization

Improvements in communication, access to information,

transportation, and geopolitical conditions continue to

drive globalization. There are lots of developments on

the horizon: new markets in Asia, new manufacturing in

Africa, new models of remote and on-demand labor,

and culture osmosis, to name a few. Businesses

will need to understand all the variables at

play in order to avoid costly failures and

missed opportunities.

Mass Customization

Whether in the B2B world or the

B2C world, there’s a compelling

need to stand out and be unique.

Thus, the ability to o�er customized

goods and services for individual

customers is a necessity, not a luxury.

The traditional way of seeking out a

bell curve to serve the largest

proportion of the customer base

is a recipe for undi�erentiated

commoditization – a killer in

today’s hypercompetitive global

marketplace.

Ethical Sourcing

Ethical sourcing and supply chain

transparency are complex topics.

Corporations need to be able to

adapt to growing customer demands

for ethical products. One infamous

example of the ethical implications of

supply chain is tantalum mining in

Central Africa. Tantalum is a rare

metal used in many modern electronics

like smartphones and computers. It is

considered a conflict resource,

because the money from mining it

has often been used to finance local

insurgencies and war. The demand

for ethical sourcing now goes further

up the supply chain than ever before

– to mills and mines and farms.

Expect this trend to continue across

all industries.

2

4

5

6

7

The 7 Forces Causing Supply Chain ComplexityThe ability to manage supply chain complexity is critical for businesses today. Factors contributing to the complexity of modern supply chains create both challenges and opportunities.

Tier 1

Tier 2

Tier 3

Tier 4

3

VISIBILITY

VISIBILITY

VISIBILITY

VISIBILITY

VISIBILITY

VISIBILITY

VISIBILITY

VISIBILITY