By: Francisco D’Angelo, Director – Manager of Yobel SCM Management, August 24, 2018
The world is changing rapidly by 3 forces: technology, globalization and climate change. In addition, three structural developments make the change possible: the introduction of smart phones, the expansion of bandwidth and connectivity through the cloud. These changes have an impact on the global supply chain. Consider these three events that were not in sight 24 months ago: Trump and the renegotiation of tariffs, incentives to manufacture in the US; Brexit threatening the European Community and the militarization of the islands in the South China Sea, which could change the rules of international shipping lines (1/3 of global shipments pass through there). From a supply chain standpoint, we must be aware of four forces: technology, consumers, the workforce, and logistics infrastructure. What is changing? Manufacturing in the United States is increasing, but with 1.5 million fewer workers. Work is being automated, saving time for employees. Artificial intelligence is redesigning work in operations. Businesses have only executed 18% of their digital potential. Freight agency is entering the digital stage. Blockchain is no longer only for bitcoins or fintechs (Walmart is testing its supply chain to add structure to its processes).
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