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In the old model of supply chains, businesses used to relate to each other in a very linear manner

In today's modern business landscape, companies are increasingly relying on complex global supply chains. In the old model
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Global Supply Chain Group - vivek BWVivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com 

Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.

Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.

Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.

Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.

More information on Vivek is available on www.linkedin.com/in/vivek  and more information on Global Supply Chain Group is available on www.globalscgroup.com

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Introduction

Introduction: Supply chains used to operate in a linear fashion where businesses dealt with each other with very little interaction. This model of supply chain management was defined by the principles of efficiency, cost-effectiveness, and speed. In such an environment, businesses interacted with each other to ensure their goods arrived at their final destination promptly while ensuring that they achieved the best possible value for their money. The traditional linear supply chain model has been replaced by new technologies and methods that are more adaptive, agile, and responsive.

Effectiveness Outsourcing Business

Content

In the old model of supply chains, businesses used to relate to each other in a very linear manner. Buyers and sellers were connected through a chain of intermediaries such as distributors, wholesalers, and retailers. The relationship between them relied solely on their respective roles in obtaining goods from one point to another. However, with the advent of technology and digitalization, this linear approach is no longer sufficient for today’s businesses. Content has become an integral part of the modern supply chain, providing customers with more complete information about products before they buy them and suppliers with more detailed data about customer needs. By harnessing content across different levels within the supply chain ecosystem, brands can use it to improve customer experience and support better decision-making around product design, pricing strategy, production scheduling, and inventory management.

In the old model of supply chains, businesses used to relate to each other in a very linear manner. This model was based on a one-way relationship between the supplier and the customer with no real feedback loop. Supply chains used to have dedicated departments that managed the flow of goods from one point to another. There was a lack of integration between different parts of the supply chain, meaning that it could take longer for products or services to get delivered. This linear approach also didn’t allow for flexibility or scalability as businesses had limited ability to adapt quickly to changes in demand. It also didn’t allow suppliers and customers to collaborate closely on product design or production schedules which could have created more efficient operations and helped minimize waste throughout the entire process. The linear nature of traditional supply chains has since been replaced by an interconnected web designed for collaboration and efficiency across all stages of production.

The old model of supply chains saw businesses linearly relating to each other, with one business providing the resources necessary for another to create or provide a final product. This linear approach was important for the efficient operation of companies and therefore the economy as a whole. It allowed services and goods to flow seamlessly between different businesses to meet customer demands, without disruption or delays.

 

This type of supply chain also enabled businesses to identify any potential problems before they occurred which helped them plan and improve efficiencies. Additionally, it gave organizations more control over their processes, allowing them greater flexibility when responding to changing market conditions. By focusing on the importance of these relationships between different businesses within a supply chain, companies could ensure that their operations ran smoothly and that customers received quality products promptly.

Example:

In the old model of supply chains, businesses used to relate to one another in a very linear manner. In this type of relationship, one company was responsible for producing an item and then this item would be sold directly to the consumer by the same company. This meant that there wasn’t as much variety or innovation because each company was solely responsible for every aspect of production and distribution.

 

An example of a business operating within this archaic model is a large food manufacturer that produces canned goods. This company is solely responsible for all aspects of production, including sourcing ingredients, processing them into finished products, packaging them up, and then selling them directly to consumers in grocery stores or other retailers. There is not much room for collaboration between different companies for new ideas or products to be created under this system.

Conclusion

The old model of supply chains, with its linear structure, has served its purpose for many years. However, it is time for businesses to step into the new era and embrace the complexities of dynamic supply chain networks. With newer technologies and solutions, companies can collaborate and innovate more rapidly across their entire value chain and strengthen their competitive edge in the market. By leveraging technology, companies can increase efficiency while reducing costs and delivering higher-quality services to their customers. In summary, an effective modernized supply chain network will enable businesses to remain competitive in an ever-evolving landscape of global markets.

Introducing.....

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The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.

Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.

what did Our Reader say?

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GARRY BADDOCK
Chief Operating Officer Graphite Energy

I have experience with many of the well-known top-tier strategy firms but chose Global Supply Chain to support me on my supply chain projects. They always meet and exceed my expectations due to the quality of the work, the ability to work collaboratively with internal teams, and the flexibility to adjust the project approach when required.

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PHILLIPPE ETTIENNE
CEO - Large Global transnational corporation From: FOREWORD - OUTSOURCING 3.0

When I engaged Vivek’s services for supply chain transformation in one of the companies I was heading, we expected the careful and methodical approach that he was famous for... I was pleased to note that the original target set for 3 years was surpassed by almost 70% in just 18 months.

global supply chain group

TONY FEDOROWICZ
Vice-President Supply Chain Asia Pacific

I have used their services for several business transformations and workshops in many companies. Each time an outstanding workshop and project result was delivered ensuring the success of the business transformation project. Savings surpassed $25 Million per annum in one case. Very powerful ideas, were implemented very diligently.

Global Supply Chain Group - Jean Briac Le Dean

Jean-Briac Le Dean
Co-Founder & Agen

Vivek is a very collaborative and open leader who leads teams by example. Whether internal teams, or clients teams, all are impressed by his intensity, energy level and drive to make things a little better.

Global Supply Chain Group - Lorna Calder Johnson

Lorna Calder Johnson
Omni-Channel Product Marketing
P & L Executive

Vivek's transformation expertise is apparent from his results and dedication to operations and supply chains. His strategic expertise, knowledge and network make him a standout even among an excellent team.

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