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Incorporating Emerging Economies in the Supply Chain

In: Supply Chain Transformation

Author

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  • Amiya K. Chakravarty

    (DM School of Business Northeastern University)

Abstract

The ripples from the rapid pace of change in emerging economies are being felt worldwide. In the next 15 years, 85% of the world’s population, and 57% of the nearly one billion households with purchasing power will live in these economies. This scenario not only provides opportunities for multinationals, it also creates a sense of urgency. Unilever, GE, and P&G, among others, already conduct a large percent of their R&D and business transactions in these economies. Therefore, formulating a strategy that incorporates emerging economies has become the top priority for many companies. That notwithstanding, global companies do face a complex set of challenges in penetrating these markets: unstable economic environment, poor infrastructure, and lower price expectations. Therefore, changes in supply chains would necessitate going beyond just tweaking the strategies framed primarily for mature economies. At the same time, it would not be feasible to manage multiple country-specific supply chains. The answer may lie in agility; a supply chain that can adapt to different environments, or a meta-supply-chain for coordinating several country-specific supply chains.

Suggested Citation

  • Amiya K. Chakravarty, 2014. "Incorporating Emerging Economies in the Supply Chain," Springer Texts in Business and Economics, in: Supply Chain Transformation, edition 127, chapter 7, pages 203-235, Springer.
    • Handle: RePEc:spr:sptchp:978-3-642-41911-9_7
    DOI: 10.1007/978-3-642-41911-9_7
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