What are Supply Networks?

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Richard Ahumibe
Management Consultant, United Kingdom

What are Supply Networks?

🔥NEW Supply network does not necessarily mean or require all the suppliers in a network collaborate, some may collaborate for strategic purposes some may also not collaborate for strategic purposes (or the lack of it).
Supply network is an organization's group of suppliers from which an organizer source inputs.

  Jaap de Jonge
Editor, Netherlands

From Supply Chains to Supply Networks

Due to the arrival of the internet, connnectivity and globalization have increased a lot and as a result, a transformation of the global economy has begun in which customers are increasingly demanding more customization, service and speed.
Products, services and the competition are changing quickly with the help of advanced information technology.
These trends are causing several massive changes in supply chains, transforming them to supply networks:
  • Demand-driven (pull) networks. The whole chain has to adapt much more quickly to changing demands from (end) customers.
  • Hyper specialization on on a global scale. Companies focus on one thing and outsource the rest.
  • Information sharing between parties, especially about customer demand.

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