THE SUPPLY C H AIN O f THE fUTUrE
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Shifting centres of gravity
All supply chains have a ‘centre of gravity’ determined by the pull of demand and
supply factors. The relative costs and availability of materials and the costs of
moving them to the point of final demand will determine where the optimal loca-
tions for factories, distribution centres and other value-adding activities should be.
Because of the uncertainties that surround the future patterns of demand and
supply and the potential changes in input costs such as energy and other basic
commodities, it becomes imperative that any decisions to redesign supply chains
reflect the need to maximise flexibility. Ideally, the supply chain of the future will
be capable of adapting ...