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Global supply chains 'being revolutionised by greater collaboration'

19 June 2012

Companies across the world are taking an increasingly collaborative approach to their supply chain management in order to achieve savings.

This is according to Alastair Sorbie, chief executive of enterprise applications specialist IFS, who told BBC News that companies are no longer looking to simply offshore their manufacturing functions to Asian nations.

Instead, they are choosing to build collaborative networks with smaller local partners in order to grow and maintain their specialist skills base, cutting the cost and complexity of their supply chain and giving them greater control.

Mr Sorbie also stated that firms are benefiting from maintaining more frequent communication and interaction with partners and customers alike via the use of collaboration tools.

"By using it as a mechanism for garnering feedback on product design and development ... it is becoming an increasingly important part of the global value chain for the successful business of the future," he said.

This comes after a recent KPMG report suggested that a growing number of UK firms are looking to near-shore their procurement capabilities as a means of better managing their business risks.

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Categories: Functional Practices, Procurement & Supply Chain

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