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A fourth concern, however, indicates a shift in global supply chain realities.
To do that, supply chain operators need the capability to personalize offerings for multiple customer segments. Market volatility, economic contractions and modest recovery cycles affect the way companies manage distribution, manufacturing, invoicing and materials sourcing.
Expansion into new markets introduces complex taxation, invoicing and localization burdens. And dispersed market segments demand different pricing models and services. With so many critical functions in flux, enterprises need to optimize their supply chains simply to remain competitive.
Globalization and a Shifting Supply Chain Landscape Unfortunately, many businesses are trying to apply outmoded processes and technologies to global supply chain operations. Often, existing systems are not capable of meeting modern demands.
If a company needs to reroute an inbound container shipment, for example, a lack of visibility into the overall system can turn a simple decision to redirect a shipment from one port to another into a problem that ripples across the supply chain, and results in higher costs and decreased efficiency.
That visibility is particularly important in a time when most products have become commoditized. Gone are the days when pricing, features, and brand recognition were enough to set a business apart from its competitors.
Differentiation in the global marketplace has as much to do with what happens in the supply chain as it does with product innovation. When the market dampens the payback for higher prices, businesses must instead meet their profitability goals by redesigning and enhancing their supply chains, and then use those improved operations to deliver value-added services to more sophisticated customers.
Increasingly, logistics leaders are charged with delivering legacy products while also supporting the development, production, and transport of new offerings. With an optimized global supply chain, an enterprise can address many of the pressures reported in the PWC study. Such a system delivers: Companies that can easily access information about their suppliers make better procurement decisions.
Online supplier and buyer community management is one approach businesses have taken to reduce their supplier sourcing and procurement costs. A global business needs a single point of access for its supplier information and its buyer-supplier communities.
With a global view and a transparent supply base, international supply chain operators can identify reliable suppliers anywhere in the world.
Those regulations differ based on customer and local standards, of course, so flexibility becomes essential to risk management. Support legacy and new products. That platform needs to accommodate taxation, invoicing and other critical functions.
As importantly, it must accommodate multiple and fluid business models to enable the company to reach international markets.
Solving Complex Global Supply Chain Challenges As companies look to amplify growth and expand quickly into promising new markets, they will have to take a hard look at what their current supply chains are capable of, and whether those capabilities are enough to support global competition.Latest news, expert advice and information on money.
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Mar 13, · How Agile and Zara Are Transforming The US Fashion Industry. The fashion industry obviously faces extraordinary challenges.
The industry that is mercurial and trend- driven. © Forbes. Mar 27, · It is the latest in a series of issues for H&M. The company had to close stores in South Africa and faced a social media backlash after it ran an ad . Zara, New Challenge in 21CIntroductionStructure of New SystemImplementation of New SystemSummary & SuggestionsCairoPremier 12 so in-house manufacturing is not suitable for expanding.
In contrast, outsourcing gives us low cost.
To use outsourcing production, we separated our product as two different groups. Zara Marketing . After several years of strong growth, our low-price GU casual fashion brand reported a sharp decline in profit in FY The operation faced multiple challenges in arenas such as management structure, personnel training, organizational power, product development, .
Big challenges and opportunities By Ricky Sun Famous international fashion brands, such as Zara, C&A, Uniqlo and H&M, are characterized by genuine similarities.