Business models around the world are changing dramatically from "Source Local" to "Source Anywhere and Build Anywhere" models. Firms have shifted away from a hierarchical, one-dimensional supply chain to a fragmented network built on strategic partnerships with external entities. Many businesses facing such a model are experiencing challenges and are struggling to compete in the new landscape. Supply chain governance can enable organizations to effectively streamline and manage their supplier quality and performance. It also helps identify, mitigate, and manage supplier risks for key procurement and manufacturing processes.
Supply Chain Governance
Need for Supply Chain Governance
Supply chain governance is critical for organizations to:
Supplier Governance System
Integrated supply chains are becoming an integral part of the competitive landscape as firms seek to create strategic advantages. Along with providing economic benefits through integration, more coordinated supply chains come with certain social obligations. Many firms are developing codes of conduct as a way of managing a number of partner behaviors within the supply chain. Supply chain models have gone from the stage of integration to disintegration and finally are re-integrating through the adoption of supply chain governance.