Global Supply Chain Ecosystems: Strategies for Competitive Advantage in a Complex, Connected World

289 Pages·2015·6.44 MB·English

by  Mark Millar

“Mark Millar is recognized in Asia as a thought leader in supply chain management. MARK MILLAR
His book Global Supply Chain Ecosystems provides new insights on the multi-
dimensional touch points across the supply chain. I strongly recommend this book
to both seasoned professionals and college students seeking to embrace this G
industry.”
L
Paul W Bradley, Chairman and CEO, Caprica International
O
“Mark Millar, one of the best known supply chain experts in Asia and beyond, has B
set a further standard in his book Global Supply Chain Ecosystems which provides E
A
valuable insights for business leaders who are managing and developing their C
global supply chains – and is a must-read for anyone interested in strengthening L
O
their competitive supply chain position.”
S
Rolf Neise, Global Logistics Programme Manager, British American Tobacco S GLOBAL
U
Y
“A generous and erudite exploration of the contemporary global supply chain
scene. A genuinely entertaining and informative read by one of the real characters SP
SUPPLY CHAIN
of the supply chain community.” TP
Kimble Winter, Global CEO, Logistics Executive Group EL
Y
M ECOSYSTEMS
Global Supply Chain Ecosystems provides invaluable advice on developing
C
supply chain strategies for competitive advantage in a complex, connected world. S
H
Twenty-first-century supply chains have evolved into worldwide inter-connected
supply-and-demand networks with profound interdependencies. Global Supply A
Chain Ecosystems explores the latest market trends and industry developments I
across emerging, developing and developed markets. N STRATEGIES FOR COMPETITIVE ADVANTAGE
In addition to highlighting key supply chain shifts such as a trend beyond IN A COMPLEX, CONNECTED WORLD
globalization towards regionalization, this ground-breaking new publication
examines several critical elements of effective supply chain ecosystems, including:
• visibility • sustainability
• risk • collaboration
M
• integrated logistics • human capital
A
• omni channel • innovation
R
K
Featuring real-life case studies taken directly from the author’s extensive
experience, Global Supply Chain Ecosystems also presents informed perspectives M
on supply chain opportunities and challenges, including analysis of the multi-
I
modal options of the New Silk Route, developments in emerging Africa and the L
diversity across the Asia region. L
A
Mark Millar is an internationally known industry expert who leverages over 30 R
years of global business experience to deliver practical knowledge and educated
insights that help companies navigate the complex landscapes in Asia and
improve the efficiency of their supply chain ecosystems. Acknowledged as an
engaging presenter who delivers a memorable impact, Mark has completed over
350 speaking engagements at corporate events, client functions and industry
conferences across 23 countries. A Visiting Lecturer at Hong Kong Polytechnic
University, Mark is recognized in the “China Supply Chain Top 20”, as one of “Asia’s
Top 50 Influencers in Supply Chain and Logistics” and in the 2014 USA listing of
“Top Pros-to-Know in Supply Chain.”
KoganPage
ISBN: 978-0-7494-7158-3
London
Philadelphia
New Delhi
www.koganpage.com
Supply chain management
Praise for Global
Supply Chain
EC oS yStEmS
‘Mark Millar is recognized in Asia as a thought leader in supply
chain management. His new book Global Supply Chain Ecosystems
provides new insight on the multi-dimensional touchpoints across the
supply chain, combined with a three-dimensional perspective on the
complex ecosystem that dynamically interacts and ultimately defines the
optimal movement of product across the globe. He includes discussion
on the transformative technologies that can provide competitive
advantage, practical case studies and shares his views on how these
new methodologies can be creatively leveraged in the evolving
developing countries. I strongly recommend this book to both seasoned
professionals and college students seeking to embrace this industry from
a different vantage point’.
Paul W Bradley, Chairman and Ceo, Caprica international
‘Mark Millar, one of the best known supply chain experts in Asia
and beyond with more than 30 years of global business experience
has set a further standard in his latest book Global Supply Chain
Ecosystems. This book provides valuable insights for business leaders
who are managing and developing their global supply chains – with a
focus on the upcoming Asian era. Mark describes the different aspects
a complex and global supply chain nowadays needs to reflect in order
to become strategic as a business enabler and a revenue driver.  He
also highlights new developments to shape global business, such as
the New Silk Road connecting Europe and Asia. Based on solid research
and insightful practical case studies, Mark’s book offers a perceptive
understanding of the roles the business and also the governments can
play to create an enabling environment for global supply chains to thrive.
Global Supply Chain Ecosystems is a must-read for anyone interested
in strengthening their competitive supply chain position in our global
economies.’
rolf Neise, Global Logistics Programme Manager, British american
Tobacco
‘A generous and erudite exploration of the contemporary global supply
chain scene. A genuinely entertaining and informative read by one of the
real characters of the supply chain community.’
Kimble Winter, Global Ceo, Logistics executive Group
‘A must-read book for freight forwarders and supply chain practitioners –
this book delivers an outstanding holistic view of global supply chain
ecosystems, including future directions such as the New Silk Road and
how Africa could emerge as the next Asia.’
Henrik Christensen, Chairman of african Logistics Club and
President of KTZ express Hong Kong Ltd
Global
supply Chain
ecosystems
Strategies for
competitive
advantage in a
complex world
Mark Millar
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publishers and authors cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or
damage occasioned to any person acting, or refraining from action, as a result of the material
in this publication can be accepted by the editor, the publisher or any of the authors.
First published in Great Britain and the United States in 2015 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism or review,
as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be
reproduced, stored or transmitted, in any form or by any means, with the prior permission in
writing of the publishers, or in the case of reprographic reproduction in accordance with the terms
and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be
sent to the publishers at the undermentioned addresses:
2nd Floor, 45 Gee Street 1518 Walnut Street, Suite 1100 4737/23 Ansari Road
London EC1V 3RS Philadelphia PA 19102 Daryaganj
United Kingdom USA New Delhi 110002
India
© Mark Millar, 2015
The right of Mark Millar to be identified as the author of this work has been asserted by him in
accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 7158 3
E-ISBN 978 0 7494 7159 0
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Millar, Mark (Supply Chain Consultant)
Global supply chain ecosystems : strategies for competitive advantage in a complex, connected
world / Mark Millar.
pages cm
ISBN 978-0-7494-7158-3 (paperback) — ISBN 978-0-7494-7159-0 (ebk) 1. Business logistics.
I. Title.
HD38.5.M546 2015
658.7—dc23
2015015896
Typeset by Amnet
Print production managed by Jellyfish
Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY
CoNTeNTs
About the author  ix
Publisher’s acknowledgements  xii
Author’s acknowledgements  xiii
01 Global supply chain ecosystems  1
Introduction  1
Supply chain management has become strategic  3
Supply chains have become increasingly complex  7
Global supply chains for a connected world  15
Summary   23
02 supply chain visibility  25
An introduction to supply chain visibility – what, why,
where and how  25
Supply chain visibility is about ‘connecting the
right dots’  26
Technology – friend or foe?  29
What do we mean by IT systems in supply chains?  34
Commitment to integration is essential  37
Case study: How technology enables supply chain
visibility  40
03 sustainability and green supply chains  45
Positive environmental strategies for a sustainable supply
chain  45
Drivers of a green supply chain  48
Practical steps to a green supply chain  56
Who can apply green supply chain and logistics
programmes?  57
vi Contents
Educating staff on environmental awareness  58
Industry leadership  58
Case study: Green supply chains depend upon accurate
and complete data collection and analysis  60
04 risk and supply chain resilience  65
Risk – building supply chain resilience for competitive
advantage  65
Evaluating the potential for risks
in the supply chain  67
Types of risk  70
Prevention vs preparedness  74
Features of a resilient supply chain ecosystem  75
Building supply chain resilience  77
Case study: Examples of supply chain risks and
contingency planning  82
05 free trade for all – navigating the fTa landscape  85
Free trade agreements – economic necessity or
political minefield?  85
Who’s who in free trade?  87
International support for FTAs  88
A valuable South-east Asia perspective  90
What’s gone wrong with the WTO’s mission?  91
What now for the WTO and FTAs?  94
Can trade barriers be justified?  96
Tariff engineering, the new supply chain discipline  98
Critical factors when considering location  99
Case study: Best practices in effective customs duty
management  101
06 The asian era  107
The workers have become the shoppers  107
The Asian Era is here and now!  109
China at the crossroads?  116
Contents vii
The rising stars of ASEAN  121
Case study: Myanmar enters the world
of global trade  128
07 The New silk road connecting europe and asia  131
An historic trade route revived for
the 21st century  131
Deep-sea ocean freight  133
Will economic shifts boost the New Silk Road?  136
Asia-Europe by land transport  139
Governmental and organizational investment
and support  141
Barriers to Silk Road trade  142
Case study: China’s $40 billion Silk Road Fund  145
08 integrated logistics hubs  149
Integrated logistics hubs enable global supply chain
ecosystems  149
Container ports as transit hubs  149
Integrated logistics hubs – leading examples  152
Logistics service providers connect the dots  161
Case study: SME freight forwarders connect integrated
logistics hubs via membership networks  164
09 Human capital – the talent pool  169
Human capital – the fuel that drives supply chain
ecosystems  169
Talent shortages in emerging markets  171
Human resource challenges and opportunities
in developed economies  172
Make training and development pay
at all levels  180
The changing labour market  182
Case study: Gender diversity in supply chain
and logistics  185
viii Contents
10 omni-channel supply chains  187
The brave new world of omni-channel supply chains  187
What drives the e-commerce revolution?  189
Old and the new – from traditional retailers
to new technology-enabled entrants  193
Supply chain impact of omni-channel?  195
Case study: The Amazon phenomenon – internet business or
logistics company?  203
11 africa – is it the next asia?  207
What future for Africa by 2050?  207
Diverse and complex  213
Logistics developments and the supply chain challenge  219
Nigeria – Africa’s largest and most populous economy  230
Case study: Walvis Bay Corridor set to make Namibia a
leading logistics hub  232
12 supply chain innovation  235
Future considerations for global supply chain
ecosystems  235
Technology developments impacting supply chains  236
Inland container port developments expand
the ecosystem  242
Game-changing infrastructure developments could
transform trade flows  244
Case study: Innovative port solution for ocean freight
supply chains  249
References  255
Index  265
aBouT THe auTHor
Mark Millar
“One of the region’s Supply Chain leaders”
China Supply Chain magazine CHaINA
“One of the most progressive people in world logistics”
Global Institute of Logistics
“One of the Top 50 influential individuals in Asia supply chain &
logistics”
Terrapinn, 2015
Mark Millar leverages over
30 years global business
experience to provide value
for clients with informed and
independent perspectives on their
supply chain strategies in Asia.
Acknowledged as an engag-
ing and energetic presenter who
consistently delivers a knowledge-
able, professional and memorable
impact, Mark has been engaged by clients as Speaker, Moderator,
Conference Chairman or MC at more than 375 corporate events,
client functions and industry conferences across 23 countries.
His ‘Asia Supply Chain Insights’ series of corporate briefings, con-
sultations and seminars deliver practical knowledge and educated
insights that help companies navigate the complex landscapes in Asia,
improve the efficiency of their supply chain ecosystems, develop new
business opportunities and make better informed business decisions.
Mark is a Visiting Lecturer at Hong Kong Polytechnic University
and has delivered Guest Lectures at Georgia Tech (Atlanta), RMIT
(Ho Chi Minh City) and SP Jain (Singapore and Dubai).