Subscribe to our free, weekly email newsletter!

Gartner special report examines supply chain strategies for emerging markets

By Patrick Burnson, Executive Editor
July 18, 2013

Supply chain leaders will play a crucial role as companies capitalize on the explosive growth in emerging markets, according to Gartner Inc.

Emerging markets have been identified as the primary business growth area for the next century, and Gartner said that organizations with strong demand planning capabilities and segmented supply strategies are better positioned to capitalize on market opportunities, as well as to mitigate risks.

“Emerging markets present huge opportunities but come with unique characteristics and challenges due to the constant thrust for business growth, volatile demand and low maturity of supply chain processes,” said Mike Burkett, research vice president at Gartner. “The ability to plan demand better is a tremendous advantage, as accurate demand plans help supply chain leaders align end-to-end supply chains correctly, and forecast predictable outcomes and profitable responses to demand.”

In an interview, Burkett said most of the research and advice is applicable across markets.

“The Asia Pacific is most often used in our examples, though the advice is applicable to Latin America and other markets,” he said.

“Businesses are positioning to take advantage of the most explosive growth opportunity since the industrial revolution. That growth won’t come from existing developed markets but from expanding into less-developed emerging markets,” said Burkett. “Defining the source of future growth was reflected in a recent worldwide Gartner survey of more than 390 CEOs and senior business executives. Respondents indicated concern about a continued recession in advanced economies. As business executives look to emerging markets for opportunity, the supply chain organization will be tasked with serving that growth.”

While CEOs recognize the critical nature of the supply chain to this global expansion, they are split on their view of its readiness. Fifty-one percent of executives surveyed see globalized supply chains as more complex and brittle now, with the balance feeling that they are more resilient than at any time in history. Gartner believes the solution in both cases is to develop supply chains that can achieve global scale while reliably serving the unique needs of both developed and emerging nations.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

As was the case a month ago, the Global Port Tracker report from the National Retail Federation (NRF) and maritime consultancy Hackett Associates is calling for annual import cargo volume gains at United States ports, as retailers gear up for the holiday season.

More than nine months after saying it was not for sale, Long Beach Calif.-based non asset-based third-party logistics (3PL) services provider UTi Worldwide has apparently changed its tune, with the company saying it has entered into a definitive agreement to be acquired by Denmark-based global 3PL DSV for $1.35 billion and $7.10 per share.

September carloads—at 1,417,750—were down 4.9 percent—or 72,597 carloads— annually, and intermodal—at 1,365,980 trailers and containers—was up 1.2 percent—or 16,272 trailers and containers.

Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry.

The NRF is calling for 2015 holiday sales to see a 3.7 percent annual gain to $630.5 billion, which comfortably outpaces the ten-year average of 2.5 percent.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA