The Supply Chain Networks Relevance

With time, the trends of the world market patterns keep changing. Due to this dynamic nature of the economy, it then follows that any given company has to be flexible and similarly dynamic to ensure it copes with the same. It is also worth noting that employing the methods used in the past could not be the best option in ensuring increased output from the company, rather, a lot of issues may arise as a result. Many such changes affect service delivery as a whole.

First of all, there is a rampant fluctuation in the prices of fuel. These have been on the rise in the past few years hence leading to a corresponding increase in the costs incurred when moving goods from one place to another. It is therefore important for the supply chains to be reconsidered as far as this is concerned. An increase in fuel costs, in addition to directly affecting the company, also leads to the shooting up of the interest rates incurred.

The increased global sourcing of goods could be yet another concern in the supply chains, particularly in the rising East. Many organizations opt to outsource their production and consequently take advantage of the low costs. The manufacturers thus no longer produce goods but just import them and market those. There are also changes in logistics whereby as opposed to the simple supply chain we now have in place a remarkably complex one that may have more challenges in itself. Other factors also have to be considered in the transportation of these goods. Such include environmental effects of the same such as carbon emission. It is evident that the costs in the supply chains are continually changing and hence the only way in which the companies can stay on the competing edge is by adapting to the same.

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