Adaptive Supply Networks

Over the last decade, increased outsourcing and alliance building have made it harder for manufacturers to spot brewing supply chain glitches.

The result? When unexpected supply chain events arise, manufacturers and their logistics service providers (LSPs) switch to firefighting -- a defensive mindset that carries a hefty price, which often leads to more damaging outcomes. Technologies are emerging which will soon enable manufacturers to sense and respond proactively to unanticipated variations in supply and demand -- and transform their static supply chains into what Forrester and some in the industry calls "adaptive supply networks."

Adaptive supply networks are business networks of supply chain partners that use technology to sense and respond in a coordinated fashion to changes in their environment. Supply Chain Event Management (SCEM) refers to the effective management of these changes or events in the supply chains. These supply networks will boast self-regulating capabilities akin to today's energy and telecom transmission networks. Within this context of adaptive supply networks, it becomes vital to understand fully the following logistics trends.