{"id":5350,"date":"2022-01-26T00:00:00","date_gmt":"2022-01-26T00:00:00","guid":{"rendered":"http:\/\/bpddev2.uk\/clients2023\/metro\/long-supply-chains-offer-innovation-and-lower-prices\/"},"modified":"2024-02-02T08:58:10","modified_gmt":"2024-02-02T08:58:10","slug":"long-supply-chains-offer-innovation-and-lower-prices","status":"publish","type":"post","link":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/","title":{"rendered":"Long supply chains offer innovation and lower prices"},"content":{"rendered":"\n<p><strong>Many companies believe that the logical response to Covid disruption is to shorten supply chains, but a new academic study suggests longer supply chains may actually provide more innovation and economic benefit.<\/strong><\/p>\n\n\n\n<p>A team of academics from the University of Oxford and Harvard University found supply chains \u2013 in which producers bought input goods, converted them into other goods and sold them to other producers \u2013 amplified the effects of technological improvements and price reduction.<\/p>\n\n\n\n<p>\u201cLonger production chains for an industry bias it toward faster price reduction, and longer production chains for a country bias it toward faster growth,\u201d said the report.<\/p>\n\n\n\n<p>In its findings the reports shows first, that the rate of change of an industry\u2019s price is a function of its position in the production network. This happens because productivity improvements accumulate along supply chains. As a result, industries that rely on longer supply chains experience stronger price declines than others.&nbsp;<\/p>\n\n\n\n<p>Second, they show how this observation can help explain cross-country differences in economic growth.&nbsp;<\/p>\n\n\n\n<p>Because an industry\u2019s position in the production network and the industrial composition of a country are slow-moving variables, aggregate growth can be predicted from the structure of a country\u2019s production network. Intuitively, countries whose final demand relies relatively more on industries with longer supply chains should grow more quickly.&nbsp;<\/p>\n\n\n\n<p>The academics found that detailed observations across industries and countries are consistent with both predictions and help explain why some countries grow faster than others.<\/p>\n\n\n\n<p>The study comes as firms have sought to reduce risk by shortening supply chains and researchers admitted their results were \u201cpotentially counter-intuitive\u201d.<\/p>\n\n\n\n<p>Doyne Farmer, professor of mathematics at Oxford University, said: \u201cThe more steps in the process, the more opportunity there is for innovation. Industries with greater supply chains do better. We have been able to predict this over long periods. It does not explain everything that happens, but the principle can be seen operating.\u201d<\/p>\n\n\n\n<p>The report said an industry benefited from \u201cboth its own productivity growth and the accumulation of productivity improvements in its upstream suppliers\u201d.<\/p>\n\n\n\n<p>\u201cAs a result, the longer its chains of production, the faster its expected rate of price reduction.\u201d<\/p>\n\n\n\n<p>James McNerney from Harvard&#8217;s Growth Lab and lead author of the study, said: \u201cWe show that production chains accumulate the benefits of technology improvement so that long production chains facilitate faster price reduction in industries and faster GDP growth in economies.<\/p>\n\n\n\n<p>Our experience does show that shorter supply chains offer many of the same benefits, including cost-savings, access to skills, and the flexibility to scale up, down, or in a whole different direction.<\/p>\n\n\n\n<p>Shorter supply chains (near-shoring) may also offer better collaboration and communication due its close proximity to the client, striking an appealing middle ground between the convenience of a domestic development team and the affordability of using far-off vendors.<\/p>\n\n\n\n<p>Near-shoring also allows businesses to conduct processes, such as warehousing and logistics services further downstream, in order to be more efficient and reduce costs.&nbsp;<\/p>\n\n\n\n<p><strong>Extended supply chains (off-shoring) and shorter supply chains can offer benefits and often a blend of both is appealing.&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Whichever strategy customers select, we work with them to improve supply chain resilience in five key areas:<\/strong><\/p>\n\n\n\n<p><strong>Understanding \u2013 With a thorough understanding of our customers\u2019 requirements and objectives we create supply chain solutions that draw on all options available in the current market.<\/strong><\/p>\n\n\n\n<p><strong>Visibility \u2013 Our cloud-based supply chain management platform, MVT, links all participants and critical time-scaled events to provide end-to-end visibility across the extended supply network, with global control down to individual SKU level.<\/strong><\/p>\n\n\n\n<p><strong>Agility \u2013 Slower moving lines from any origin can be deferred, while priority orders can be highlighted and expedited, to increase speed to market and accelerate the cash-to-cash cycle.<\/strong><\/p>\n\n\n\n<p><strong>Flexibility \u2013 It is simple to change supply lines, adding and monitoring new vendors, product flows and outbound order data, from any location.<\/strong><\/p>\n\n\n\n<p><strong>Contingency \u2013 MVT\u2019s exception alerts and rules-based solutions, correct operational non-conformities, without human intervention, or alert users to issues outside set-parameters for corrective action.<\/strong><\/p>\n\n\n\n<p><strong>For specific information, or to discuss how our technology could support your supply chain, please contact Simon George our Technical Solutions Director or Elliot Carlile.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many companies believe that the logical response to Covid disruption is to shorten supply chains, but a new academic study suggests longer supply chains may actually provide more innovation and economic benefit. A team of academics from the University of Oxford and Harvard University found supply chains \u2013 in which producers bought input goods, converted [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4630,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60],"tags":[],"class_list":["post-5350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.9.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Long supply chains offer innovation and lower prices - Metro<\/title>\n<meta name=\"description\" content=\"Near or off-shoring, we improve supply chain resilience with; Understanding | Visibility | Agility | Flexibility | Contingency\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Long supply chains offer innovation and lower prices - Metro\" \/>\n<meta property=\"og:description\" content=\"Near or off-shoring, we improve supply chain resilience with; Understanding | Visibility | Agility | Flexibility | Contingency\" \/>\n<meta property=\"og:url\" content=\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/\" \/>\n<meta property=\"og:site_name\" content=\"Metro\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MetroShippingLife\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-26T00:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-02T08:58:10+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-content\/uploads\/2024\/02\/China-exports.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"1125\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Kelly\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@MetroShipping\" \/>\n<meta name=\"twitter:site\" content=\"@MetroShipping\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul Kelly\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/#article\",\"isPartOf\":{\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/\"},\"author\":{\"name\":\"Paul Kelly\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/person\/6cd6252b887c1bc070fc68624f421a98\"},\"headline\":\"Long supply chains offer innovation and lower prices\",\"datePublished\":\"2022-01-26T00:00:00+00:00\",\"dateModified\":\"2024-02-02T08:58:10+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/\"},\"wordCount\":697,\"publisher\":{\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#organization\"},\"articleSection\":[\"Supply Chain\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/\",\"url\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/\",\"name\":\"Long supply chains offer innovation and lower prices - Metro\",\"isPartOf\":{\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#website\"},\"datePublished\":\"2022-01-26T00:00:00+00:00\",\"dateModified\":\"2024-02-02T08:58:10+00:00\",\"description\":\"Near or off-shoring, we improve supply chain resilience with; Understanding | Visibility | Agility | Flexibility | Contingency\",\"breadcrumb\":{\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Long supply chains offer innovation and lower prices\"}]},{\"@type\":\"WebSite\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#website\",\"url\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/\",\"name\":\"Metro\",\"description\":\"\",\"publisher\":{\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#organization\",\"name\":\"Metro\",\"url\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/logo\/image\/\",\"url\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-content\/uploads\/2024\/02\/metro-logo.png\",\"contentUrl\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-content\/uploads\/2024\/02\/metro-logo.png\",\"width\":2509,\"height\":404,\"caption\":\"Metro\"},\"image\":{\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/MetroShippingLife\/\",\"https:\/\/twitter.com\/MetroShipping\",\"http:\/\/www.linkedin.com\/company\/1950279\"]},{\"@type\":\"Person\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/person\/6cd6252b887c1bc070fc68624f421a98\",\"name\":\"Paul Kelly\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/417910118a0bd9757d743992c74ba5be60d6e1d50e55fdf6793bbf18f06196e8?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/417910118a0bd9757d743992c74ba5be60d6e1d50e55fdf6793bbf18f06196e8?s=96&d=mm&r=g\",\"caption\":\"Paul Kelly\"},\"url\":\"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/author\/paul-kelly\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Long supply chains offer innovation and lower prices - Metro","description":"Near or off-shoring, we improve supply chain resilience with; Understanding | Visibility | Agility | Flexibility | Contingency","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Long supply chains offer innovation and lower prices - Metro","og_description":"Near or off-shoring, we improve supply chain resilience with; Understanding | Visibility | Agility | Flexibility | Contingency","og_url":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/","og_site_name":"Metro","article_publisher":"https:\/\/www.facebook.com\/MetroShippingLife\/","article_published_time":"2022-01-26T00:00:00+00:00","article_modified_time":"2024-02-02T08:58:10+00:00","og_image":[{"width":1500,"height":1125,"url":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-content\/uploads\/2024\/02\/China-exports.jpg","type":"image\/jpeg"}],"author":"Paul Kelly","twitter_card":"summary_large_image","twitter_creator":"@MetroShipping","twitter_site":"@MetroShipping","twitter_misc":{"Written by":"Paul Kelly","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/#article","isPartOf":{"@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/"},"author":{"name":"Paul Kelly","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/person\/6cd6252b887c1bc070fc68624f421a98"},"headline":"Long supply chains offer innovation and lower prices","datePublished":"2022-01-26T00:00:00+00:00","dateModified":"2024-02-02T08:58:10+00:00","mainEntityOfPage":{"@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/"},"wordCount":697,"publisher":{"@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#organization"},"articleSection":["Supply Chain"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/","url":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/","name":"Long supply chains offer innovation and lower prices - Metro","isPartOf":{"@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#website"},"datePublished":"2022-01-26T00:00:00+00:00","dateModified":"2024-02-02T08:58:10+00:00","description":"Near or off-shoring, we improve supply chain resilience with; Understanding | Visibility | Agility | Flexibility | Contingency","breadcrumb":{"@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/"]}]},{"@type":"BreadcrumbList","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/long-supply-chains-offer-innovation-and-lower-prices\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"http:\/\/bpddev2.uk\/clients2023\/metro\/"},{"@type":"ListItem","position":2,"name":"Long supply chains offer innovation and lower prices"}]},{"@type":"WebSite","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#website","url":"http:\/\/bpddev2.uk\/clients2023\/metro\/","name":"Metro","description":"","publisher":{"@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"http:\/\/bpddev2.uk\/clients2023\/metro\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#organization","name":"Metro","url":"http:\/\/bpddev2.uk\/clients2023\/metro\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/logo\/image\/","url":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-content\/uploads\/2024\/02\/metro-logo.png","contentUrl":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-content\/uploads\/2024\/02\/metro-logo.png","width":2509,"height":404,"caption":"Metro"},"image":{"@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/MetroShippingLife\/","https:\/\/twitter.com\/MetroShipping","http:\/\/www.linkedin.com\/company\/1950279"]},{"@type":"Person","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/person\/6cd6252b887c1bc070fc68624f421a98","name":"Paul Kelly","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"http:\/\/bpddev2.uk\/clients2023\/metro\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/417910118a0bd9757d743992c74ba5be60d6e1d50e55fdf6793bbf18f06196e8?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/417910118a0bd9757d743992c74ba5be60d6e1d50e55fdf6793bbf18f06196e8?s=96&d=mm&r=g","caption":"Paul Kelly"},"url":"http:\/\/bpddev2.uk\/clients2023\/metro\/news\/author\/paul-kelly\/"}]}},"_links":{"self":[{"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/posts\/5350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/comments?post=5350"}],"version-history":[{"count":1,"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/posts\/5350\/revisions"}],"predecessor-version":[{"id":6189,"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/posts\/5350\/revisions\/6189"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/media\/4630"}],"wp:attachment":[{"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/media?parent=5350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/categories?post=5350"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/bpddev2.uk\/clients2023\/metro\/wp-json\/wp\/v2\/tags?post=5350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}