ABSTRACT

Balancing between operational and financial performance, product and service innovation, and proliferation pressure has become a daunting task for most businesses around the globe. In addition, businesses increasingly must deal with volatility and uncertainty as a business certainty for several important reasons. Among them, outsourcing to regions with low labor cost has increased the distance to market and, as a consequence, raised uncertainty of supply. Product customization is no longer an order winner, but rather a qualification to do business. In this environment, enhanced supply chain services (like short lead times, daily deliveries, no stock outs, etc.) have become the new order winners in business. Many of these services are driven by the fact that markets are looking for seamless integration of their virtual supply chains.