Logistics and Supply Chain Management, 6th Edition

The need for adaptability

It is clear that markets and supply chains are always in a constant state of dynamic change and adaptation. However, evidence shows that the rate of change has accelerated to the point where the business models that have served us well in the past may no longer work at all tomorrow.

Figure 18.1 below highlights the challenge. We have moved from a business environment where the supplier held the power – often through their ownership of resources, technology and brands – to a situation where the customer, or even the consumer, is now in the driving seat. Where once it was a ‘sellers market’, today it is a ‘buyers market’. Simultaneously, the prevailing marketing philosophy has moved from the idea of mass markets served ...