In today's rapidly changing world, the lifespan of products is shrinking at an unprecedented rate. The once-reliable product life cycle has been significantly shortened, causing a ripple effect on the global supply chains. This ever-increasing pace of change is challenging businesses to stay adaptable and innovative to survive in the marketplace.
If we examine the history of product life cycles, we find that in the past, a typical product used to remain relevant for several years. For instance, in the computer industry, the vision of CRT monitors was prevalent for around nine years. Similarly, in India, the design and platform changes used to occur every four to five years. However, when we observe the current scenario across various industries, such as televisions, consumer appliances, air conditioners, and mobile phones, we notice a significant shift.
When we consider the top brands in these industries, we find that their average existence is around 16 years. This means that since the emergence of smart devices, approximately 16 years ago, consumers have seen a remarkable transformation in the products they use. It is not uncommon for individuals to have experienced 15 or 16 changes in the stock keeping units (SKUs) of their devices. This shortening of product life cycles puts immense pressure on supply chains to adapt and keep up with the demand.
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To tackle these challenges, businesses must embrace a global approach. Integration of supply chains becomes essential, considering the evolving product dynamics. The footprint of any country, including ours, should be ready to align with the global supply chains. This approach ensures that the necessary components or products are available when needed, irrespective of the geographical boundaries.
Amidst these industrial shifts, there is a promising opportunity for small and medium enterprises (SMEs). Over the past few decades, there has been a significant surge in the number of SMEs focused on creating components for various industries. This surge indicates that more individuals are recognizing the potential in component manufacturing and are eager to contribute. The growth of these enterprises not only promotes economic development but also feeds into the larger framework of global supply chains.
In conclusion, the shrinking product life cycles have necessitated a transformation in the way businesses operate. The rapid pace of change across industries is putting immense pressure on supply chains to adapt and deliver. To overcome these challenges, companies must embrace an integrated global approach to their supply chains, ensuring that they remain competitive in the market. Additionally, the rise of small and medium enterprises in component manufacturing presents a promising opportunity for economic growth and further integration into the global supply chains. By acknowledging and adapting to these changes, businesses can position themselves for continued success in an ever-evolving marketplace.
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