Increased complexity
In the past two decades, world trade has increased dramatically. Unpredictable demand patterns now have ramifications across regions. As a result, the complexity of individual supply chains has intensified. Forecasting and planning has become increasingly difficult as companies struggle to predict pricing and availability of raw materials.
In an attempt to mitigate these risks, companies often look to increase inventory levels. However, this can result in higher inventory costs, as well as the accumulation of dead stock. To be effective, supply chains must demonstrate clear value against customer buying behaviour.
- See more at: http://www.supplymanagement.com/blog/2015/09/three-supply-chain-megatrends-you-need-to-be-aware-of#sthash.41XVhjuU.dpuf