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6 Common Myths About the Global Supply Chain

It should come as no surprise that supply chain is a determinant of business success. In today's digitally driven marketplace, almost nothing moves without the supply chain. Thanks to the industrial internet of things, the cloud, the smart factory and other trending technologies, businesses face increasing complexity in their supply chain.

Keeping up with the speed of changes in this era of digitized and globalized business has become more difficult than ever before. As the landscape evolves, supply chains need to adapt to stay ahead of the curve; it is a company's ability to manage complexity that will define how well they can compete and succeed.

Although the importance of supply chain management is clear for modern economies, there are many myths and misconceptions that plague the practice. If you manufacture or sell products, or just provide a service, it's time to check conventional wisdom. 

Click on the image below to start a slideshow of the six common myths.

Back in the 1980s, professionals that were involved in purchasing were often viewed as “buyers” or “clerks”.  It was more of an administrative function based on history and intuition. But that early interpretation completely missed the increasingly strategic role that supply chain management now plays in the modern digital enterprise. Today it is closer to finance than operations, with supply chain professionals managing many functions from investment to cash utilization, taxes to import and export requirements, and compliance to risk mitigation.
All photos courtesy: Jabil

Back in the 1980s, professionals that were involved in purchasing were often viewed as “buyers” or “clerks”.  It was more of an administrative function based on history and intuition. But that early interpretation completely missed the increasingly strategic role that supply chain management now plays in the modern digital enterprise. Today it is closer to finance than operations, with supply chain professionals managing many functions from investment to cash utilization, taxes to import and export requirements, and compliance to risk mitigation.

All photos courtesy: Jabil

Dispelling the most common misconceptions is the first step in achieving supply chain excellence, working with the right partner with years of experience and the tools to manage complex data is the next and perhaps most important step. 

2 comments on “6 Common Myths About the Global Supply Chain

  1. phil@wearescoop.com
    September 5, 2017

    Thanks for the post John, it's a really good read and some great insight into global supply chains.  It is particularly interesting to see the career opportunities available in this sector and the developments occurring.

  2. haladf
    September 12, 2017

    I could have entitled this 'why I left procurement'.  Sadly, the comments are not new or original.  Only last week I was asked by a multinaional I considered the technical or commercial aspects of procurement to be more important.
    Procurement and supply chain seem to be primarily accounting and finance functions, even when they involve quality, engineering, compliance etc, it is a case of managing the paperwork so that the 'blame' lies elsewhere.
    There is not a realy shortage of technical staff for procurement but there does seem to be a surplus of managers who have a reliance upon finance rather than a detailed knowledge of what they are sourcing and buying and an understanding of the cross-functional nature of business.

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