Gartner Research

Three Triggers for Supply Chain Design Evaluation

Published: 13 June 2016

ID: G00303876

Analyst(s): Kamala Raman

Summary

Shorter business cycles, faster response times and growth via new product introductions are three triggers for increased complexity and higher costs in the supply chain. This research demonstrates how supply chain executives can benefit by reviewing their supply chain's network design.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Shorter business cycles make it harder for lean supply chains to respond to changes in demand trends or commodity price fluctuations, creating a challenge for supply chain executives and leading to expensive corrective actions and increased total network costs
    • Life Sciences
    • Industrial
    • Defense and Aerospace
    • High Tech
  • Initiatives to increase responsiveness to local market needs can lead supply chain leaders to make localized design decisions that can suboptimize overall supply chain costs
  • As businesses launch new products and services, the longer lead times required to make structural changes vis-à-vis the desire to execute quickly often lead supply chain leaders to decisions that increase operational expenditures and, therefore, total network costs

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