To find success with global supply chains, companies need to integrate operations both vertically and horizontally, a new briefing paper from the Economist Intelligence Unit has warned.
The study, which is sponsored by Oracle, highlights the problems suffered by aeroplane manufacturer Boeing, which in October announced a six month delay in the delivery of the 787 Dreamliner.
“After months of touting the benefits of its new collaborative supply chain management system . . . the company cited shortages of key materials and slow deliveries by suppliers as primary reasons for delaying initial deliveries of the Dreamliner until late 2008,” the EIU said.
The study, entitled “Global supply chains: understanding risks and rewards”, provides a tour of the key issues involved in managing risk as globalisation extends supply chains across continents. It also provides a number of case studies.