Supply chain key to growth in emerging markets

16 July 2013

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17 July 2013 | Adam Leach

Businesses with mature demand planning and supply strategies are best placed to capitalise on opportunities from emerging markets, according to research.

Supply Chain Strategies for Emerging Markets, published this week by Gartner, proposed that businesses attempting to capitalise on demand from emerging markets can gain a competitive advantage by strengthening their supply chain operations. In particular it highlighted demand planning as key, with those businesses with accurate forecasts better placed to align their supply chain to demand.

Mike Burkett, research vice president at Gartner, said in a statement: “Emerging markets present huge opportunities but come with unique characteristics and challenges due to the constant for business growth, volatile demand and low maturity of supply chain processes. The ability to plan demand better is a tremendous advantage, as accurate demand plans help supply chain leaders align end-to-end chains correctly, and forecast predictable outcomes and profitable responses to demand.”

The report said CEOs of global companies are pretty much split on the maturity of globalised supply chains, with 51 per cent believing them to be more complex and brittle than ever before and 49 per cent they have never been more resilient. The finding, according to Gartner, indicates businesses should look to build supply chains with global scale, but also local flexibility.

In terms of challenges, changing regulatory environments was the most common cited by chief executives. Developing talent in the region and adapting the supply chain to local market needs were also highlighted as major issues to be tackled.

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