Quantifying value creation in supply chains
Brexit aside, all companies are having to adapt to an international trade environment which is changing at an unprecedented pace. Businesses which base their investment decisions and structure their value chains based on past practices risk failing to capitalise on the future.
Disruptive technologies, the urgent drive towards sustainability, and volatile geopolitical tensions are reshaping how we create and consume products.
These trends also mean supply chains need to be thought of differently. Historically, the primary considerations when investing in a supply were physical. However, the exponential growth of e-commerce, the internet of things, and machine learning mean that the traditional approach to quantifying value is no longer fit for purpose.
Intangible factors – data flows, intellectual property or the availability of service suppliers – have become more than mere secondary factors.
Understanding differences in how and where value will accrue, and planning for a range of future scenarios will be critical for effective business planning. Businesses that fail to plan for these changes are likely to be unable to compete effectively before long.
Boosting resilience to trade and supply chain disruption
Brexit forms just one small part of the disruptive forces impacting the global economy that companies have had to navigate. More than anything, the COVID-19 pandemic has exposed the sheer scale of interdependencies in globally interconnected supply chains. Companies should now look to integrate more resilient practices into their supply chains and help to prepare themselves against future shocks.