Are Multiple Supply Chain Networks Important?

By Jon Hansen: “I recently posed a question on the importance of Multiple Supply Chain Networks which, within a matter of several hours, elicited 14 responses from around the world. And while the majority of respondents felt that the findings from an ISM, CAPS and AT Kearney 2006 report were not indicative of general market sentiments, it nonetheless has proven to be an issue that is of considerable interest to supply chain professionals and academics.”

“As a result, over the next week I will share the answers as well as corresponding discussion tracks starting today with the response from a Senior Director Supply Chain Operations in the Apparel & Fashion Industry in the United States. PI Question: A 2006 Report titled Succeeding in a Dynamic World: Supply Management in the Decade Ahead made the following statement:

“Designing and operating multiple supply networks to meet the needs of specific market segments–supply chain innovation and the use of multiple supply chains will be important to future revenue and market share growth.”

Based on your own experience is this an accurate assessment? If yes, why? If no, why?
Network Member Profile: Senior Director Supply Chain Operations, Global Markets (Fashion & Apparel Industry), U.S.A. Reader Response: I agree.

Multiple and supple Supply Chains that can be adopted quickly mitigate the risk associated with global business. Absolutely! Unanalyzed loyalty, or myopic reliance on a specific supply chain process or partnerships is less efficient for all products that a global business must produce to meet their growth demands; specifically, because, typically the chain is designed around either trying to meet all products needs (in the case of Apparel this is the biggest mistake we make- one chain for all brands), or geared towards one products exceptions (automotive innovation is the example here). This creates unneeded pathways that add time, cost, or non required testing or analytics to individual product demands.” Are Multiple Supply Chain Networks Important?

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