Traditionally the major players supported their global programmes with significant investment. Therefore, whilst some may suggest local markets were being exploited; in fact these expansions into new regions depended upon long-term investment and stability to achieve Return on Investment (ROI).
The increasing trend is now to seek flexible supply chains that can be more responsive to economic and political change. Both drivers can now be more readily identified and reacted to.
The resultant unstable supply chain, while providing short term gain, can destabilise long term development and growth - both locally and globally.
Organisations no longer have to undertake major local investment. The leaders in exploiting Web technology have already demonstrated the value of virtual organisations, which can expand and contract to meet fluctuations in the market.
In a growing market that is redefining itself they promote growth potential, and their ability to change shape and direction is not constrained by geographic boundaries.
However, any supply chain programme seeking advantage by using virtual organisations is exposed to risks not previously considered.
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