Why does Drakken place so much importance on maintaining and growing a strong global supply chain? Would it not be more reliable to invest in local and regional supply chains which are closer to home?
Bearing in mind that everything we do at Drakken has the aim of optimizing our projects, here are our 6 biggest reasons to opt for a global supply chain.
- As opposed to smaller, more regional supply chains, a global supply chain is extremely competitive, meaning you will be able to obtain your products at really great prices and to a high quality. Where there is less competition, there is less incentive for companies to produce to the standards of the highest possible quality controls, and sell to you at absolutely minimal prices. They really want your business, and they will work to get it.
- A supply chain having resources all around the world means that we can design procurement plans around each project’s individual specifications and standards, and fulfil our specs according to what will be the best fit for that project. For example, Drakken’s extensive network in the Canadian market enables us to buy ‘off the shelf’ solutions for control and instrumentation hardware. Due to the volume of work in Western Canada many distributors carry stock that would be over 6-8 weeks delivery from the factory.
Until you have seen it in action, you may not realize how going global makes the procurement of any item easy – because you know that it will definitely be in production somewhere in the world. This can make a crucial difference to time-sensitive and fast-tracked projects especially.
- By having a range of contacts and suppliers internationally, you will be able to significantly reduce the amount of stock you need to retain, meaning big savings not only in the myriad costs involved in storage and insurance, but also transportation.
These costs truly add up to a substantial percentage of outgoings, even for large companies, so keeping them to a minimum and outsourcing supply and storage is a win-win for business all round.
- Related to this is the fact that the global supply chain operates on a 24/7 basis thanks to the differences in time zones on different continents. What can start out seeming like an obstacle has actually been harnessed by the manufacturing world to create a ‘supply chain that never sleeps’. While this may mean you have to take a phone call outside of your preferred office hours, the outweighing benefit is that there will be people working on your project solutions around the clock.
- One of the best and most interesting aspects of the global supply chain is the opportunity to learn from others in a global ‘school of business’. Drakken has extensive experience in North America, Europe, Asia and Africa, all of which bring different business ideas to the table.
Whether you are presented with new ways of conducting business, new production methods, or new ways of handling distribution, things can be done so differently all around the world, and being introduced to new and varied influences is a surefire way to promote innovation and competitive practice in your own business.
- Our final top reason for investing in a global supply chain for your business is its inherent flexibility, which is a core component of the supply chain on a global scale, and which makes your business more immune to failure, even in tough times of economic downturn.
Flexibility is an essential component of any supply chain, but the global supply chain has to provide this as a top priority. This in turn promotes maximum spreading of risk. As such, the flexibility provided by the global supply chain can be seen almost as a failsafe insurance policy against supply chain disaster.
So of course, there are potential drawbacks inherent in a global supply chain, as with any business growth undertaking. You will be working with people in a different time zone and you will get used to knowing exchange rates. It also means you could have to expand your mental horizons of what you might have thought possible for your business.
But since it delivers such a competitive edge and provides so much flexibility against manufacturing and supply problems, going global continues to lead the way in the best approach to supply chain frameworks, and increases chances – not only of surviving, but thriving, in today’s competitive marketplace.