For example, in 2022, the Ukraine-Russia issue disrupted supply chains , affecting manufacturers and causing price hikes for wheat, vegetables, etc. Prior to that, in 2020, supply chain disruptions caused by the COVID-19 pandemic led to a shortage of various goods, including semiconductor chips, which became a hot topic.
Supply chains are an area that has been attracting global attention in recent years from the perspective of ESG and sustainable management . Furthermore, cutting-edge technologies such as blockchain and drones are beginning to be used, and it is an area that is in the midst of transformation and is expected to evolve significantly.
IT is inseparable from this transformation. Since the COVID-19 pandemic, there has been a movement in Japan, both public and private, to build a more resilient supply chain, and I believe there are already many IT professionals involved in supporting the digital transformation of their clients' supply chains . In the near future, the fusion of IT and offline business will likely accelerate even further.
Maybe there is even a possibility of developing a platform netherlands business email list to take things offline in your own company's area . So in this article, what is a supply chain? I will explain the changing supply chain market as much as possible from the perspective of an IT BtoB marketer.
What is Supply Chain?
The supply chain refers to the entire process from planning and development, procurement of raw materials, manufacturing, processing, inventory management, delivery, and sales, to the point where a product reaches the customer. This series of processes is connected like a chain, which is why it is called the supply chain.
Supply
Chain = connection, chain
Supply chains come in various forms depending on the industry and business model of the company, but structurally they can be broadly divided into three parts: procurement, manufacturing, and shipping logistics. In simplified terms, the flow for the manufacturing industry is as shown in the diagram below.
Manufacturing example
Manufacturing Supply Chain (1)
Example of an IT company's supply chain
In the software industry, the equivalent of raw materials is human resources. Although there is no need to hold inventory or deliver, in Japan it is common for companies to have a multi-layered subcontracting structure with multiple layers of subcontractors, so many companies have a supply chain like the one in the diagram below.
As the term " IT supply chain risk" suggests, if supply chain management is not solid, there is a risk of information leaks from business partners.
IT Industry Supply Chain
(Source: IPA )
*In the IT industry, computer manufacturers and parts manufacturers correspond to the supply chain model of the offline industry mentioned above.
Development and background of the idea
The supply chain is an important area that greatly affects corporate profits, along with sales expansion and cost reduction. A supply chain that can flexibly respond to customer needs shortens lead times, reduces costs, and increases competitive advantage.
There was originally a unique system called " Keiretsu ," and just as the "Just-in-Time" system originated in Japan, supply chain construction was a specialty of Japanese manufacturing. Here, we will briefly summarize the changes in supply chains in recent years.
[Since 2000]
With globalization, many companies around the world have relocated their manufacturing bases to China, where labor costs are low, and about 20 years ago China was called the " world's factory ." As China grew and labor costs soared, many companies moved their manufacturing bases to countries with even lower labor costs, such as Vietnam and Bangladesh.
Also, in response to the growth of emerging countries, we began to establish a system for manufacturing and selling locally. From a global perspective, we continued to pursue the optimal supply chain, including from which bases in the world we should gather resources, where we should produce and process them, and from where we should deliver them to which markets most efficiently.
Consumers around the world will have easier access to low-cost, high-quality products.
[2020 and beyond]
The COVID-19 pandemic that broke out at the end of 2019 disrupted global supply chains in 2020. Unlike a disaster that occurs in a single country, this has had an unprecedented impact on companies and consumers around the world. Risks unique to global supply chains, such as prioritizing one's own country in an emergency, have become apparent.
