Logistics and Supply Chain Management in Emerging Markets - A New Way of Creating Value Horizontally
By: Peter Kopitz
Most businesses, especially small companies or villages in rural locations, don’t have the know-how, or can’t afford to manage a complex supply chain of the scale and scope of the larger local and international industry players on their own.
They need support on how to get in touch with suppliers, buy raw materials in a more efficient way, as well as manufacture and sell their goods to regional and international clients. Further needs include control mechanisms for quality consistency, price stability, package design, packaging, storage, distribution centers, logistics, after sales support, feedback on quality improvements, financial support and access to materials and export markets. Another vital factor is how to encourage continuous improvement and foster creativity and innovation.
Supply chaining is a way of collaborating horizontally among suppliers, manufacturers, retailers and customers to create additional value through economies of scale and efficiencies. The more these supply chains are actively integrated and utilized, the more they encourage and foster the adoption of common standards and practices between companies, so that every step of the supply chain can interface with the next encouraging cooperation, development and finally economic growth. Even developed nations have problems properly implementing these procedures, but they provide substantial value and should be implemented in every economy.
Peter Kopitz is currently living in Bangkok, Thailand after graduating with Honors from the University Of Chicago Graduate School Of Business with a Masters Degree in Business Administration. He is actively involved in researching economic and political development in Thailand, focusing primarily on property development, security analysis and investment banking. Hawaii Home Loans | Honolulu Realtor | Hawaii Rentals