VIDEO: Why Value Chain Innovation in Developing Countries Matters to Multinationals

By Admin
Not every business has the same resources to achieve an integrated supply chain, especially in developing countries where government and infrastructure...

Not every business has the same resources to achieve an integrated supply chain, especially in developing countries where government and infrastructure issues can cause significant barriers.

There can be varying standards and reliability of service is not consistent across continents and this issue will be key to BRIC nations (Brazil, Russia, India and China) as they start to emerge as driving forces of the future global economy.

Brazil for instance, with a population of 170 million and the fifth largest country after Russia, USA, Canada and China, is a country with continental dimensions and with very dynamic manufacturing and services industry.

Although Brazil is not a leader in the area of supply chain management, the country is significant in terms of internal markets and international trade. Therefore, there are many international world class supply chain service providers that are present in the South American country.

In a part of the Stanford Graduate School of Business’s Insights series, Hau E. Lee (Professor of Operations, Information & Technology) offers insight on how those businesses in developing countries can overcome those barriers.  

Lee said: “Sometimes those barriers are because suppliers do not trust, or do not have the right information, or have their own constraints. So in helping them by collaborating with them, you overcome their barriers, which in turn unblock your own bottleneck.

“By going out and having the right information shared, having the right collaborations in place, having the right incentives in place can go a long way.”

As Lee notes, business students and current multinational corporations would also be wise to study and learn from the way that businesses in developing economies are innovating, growing, and building their supply chains.

Watch the whole video for more insight on how value chain innovation can help businesses grow no matter where it is starting out.

Share

Featured Articles

AI 'Must not be Seen as Threat' - Siemens CPO Staubitzer

Siemens Chief Procurement Officer Klaus Staubitzer explains why modern supply chain leadership must demonstrate AI tech is an opportunity and not athreat

IBM: Supply Chain Data is Sustainability 'Blockage'

IBM study highlights sustainability disconnect between intention and impact, with 76% of execs agreeing it's crucial but just 30% making much progress

Heineken Toasts Success of Supply Chain Transformation

Digital transformations have a notoriously high failure rate but not so at Heineken, who has transformed its European logistics operations to great effect

GEP's Procuretech Advice, as new Scope 3 Reporting Laws Loom

Operations

Cainiao: The World's Largest Ecommerce Logistics Provider

Operations

FedEx Express Opens Singapore Logistics HQ

Logistics