MARKETS ARE
BECOMING INCREASINGLY DYNAMIC, WITH
CONTINUOUSLY
EVOLVING
EXPECTATIONS AND INCREASING
SERVICE VARIETY
Do you also have that sneaky feeling?
• that there are
suddenly and unexpectedly huge market opportunities "out there" and
you find out about
them too late while your major competitor may already be talking
and trying to
sell to that prospect
•
that some companies seem to be very successful in very peculiar
niche markets
•
that new competitors pop up all over the place especially when and
where you
didn't expect them
•
that your prospect/client requires a total solution to his problem
rather than
the delivery of a product
•
that you by yourself cannot deliver what the customer expects be
cause you're not good at everything
•
that all your customers seem to want something new and special, in
what appears to be an impossible short time span, and for a lot less
money.
Markets are increasingly becoming hectic and "hyperdynamic," typified
by the following key characteristics:
•
increased competition due to globalization, collaborative dynamics
(mergers,
acquisitions, divestments), deregulation
•
ever
shorter-lived opportunities and niche markets
•
continued progression of customer expectations (specials, value,
speed, price)
•
faster
introduction of new technologies
•
increasing
societal pressures, e.g., environmental requirements.
These phenomena seem to be universal and become progressively
present in all industry sectors and geographical regions.
Figure 1
illustrates
how some industry sectors (e.g., telecommunications and computer
applications) are already a decade underway toward hyper dynamics,
whereas other sectors, e.g., utilities, have only just begun to get
on that same track. Eventually, all market sectors will become
substantially
more dynamic compared to what we were ever used to before.
Markets change
dynamically, almost overnight. But manufacturing
and supply chain operations only change when you choose to
change, as a deliberately taken decision. Manufacturing and supply
chain operations cannot change
overnight like markets do, due to the level of investments involved,
large expenses, and long lead times to
change. Manufacturing and supply
chain operations must therefore carefully trade off between
being agile enough such that the dynamics
of the market are reasonably well followed. On the other hand,
we must ensure being efficient as we do not want to spend too
much in order to achieve that level of agility. For any level of
agility there is a price, and
those that can choose their supply chains well, as much
as possible in line with market
dynamics, without overspending to
achieve that status, will
succeed in capturing the potential of the hectic markets of
today.
In these increasingly unpredictable and uncertain times, it becomes
therefore prerequisite to know what—currently
and in the near future—
can make you win orders with your customers, and deduce from that
knowledge if, how, and when to reorganize your operations in general
and your
supply chain in particular towards success.
In the sections that follow, we shall explore these answers progressively
and conclude with a real-life case.
To Be Continued