network of scm

network of scm

Friday, April 1, 2011


Companies had started to re-evaluate how the changing business environment can or has impacted their organization in 2010. The change to a global economy has created increasing numbers of variables in today’s Business landscape. Examples of these changes include increased customer demands, greater complexity within the global business network, and compliance constraints. Additionally, the recession has resulted in a greater increase to preserve working capital. Companies have started reassess their supply chain strategies and approach which is the first step. The big challenge in 2011 is around how many companies will act on these findings.

It is quite evident that designing next generation supply chains requires attention to dimensions such as configuring the right logistics network, engaging the right alliances and partnerships, developing contingency plans against uncertainties and selecting appropriate production, inventory and distribution strategies. Increasing level of international trade is usually directly proportional to increase in uncertainty and thus the need to identify underlying causes and strategies to protect against potential disruptions. Digital economy and information technologies in the form of E-supply chain solutions have the potential to directly contribute to measurable parameters, such as compressing cycle time, lowering inventories, decision-making quality, reduced overhead costs .

 Risk Management will be the top challenge for companies in this year. 
It  included transportation issues, its equipment and personnel shortages, fuel prices, and environmental considerations should be added to the list. Cost Cutting, Reducing Lead Time and Increasing throughput to inflow actual money into the system..
As per me the following challenges SCM  have -
•Cost effective Green Supply Chain. 
• New management models dealing with skills, collaboration and outsourcing. 
• Demand Management and Mass Customization. 
• New Technology and ICT. 
• Managing SC uncertainty, complexity, customer responsiveness and risk. 
• Emerging economies 

No comments: