SCM can help you transform a traditional linear supply chain into an adaptive network with the following benefits. With the increased visibility into the supply chain and adaptive supply chain network, you can be more responsive.
Stephen Slade The years from through were notable for their economic volatility, reflected not only in the global economic recession but also the instability of customer demand and rapid movement in raw material, fuel, and commodity prices.
Supply chain executives were under pressure to develop more efficient, customer-centric supply chains while finding innovative ways to reduce costs and enable growth. Meanwhile, they were also being asked to take advantage of business opportunities that arose from their economic conditions.
Companies tripped over themselves to build ecommerce portals, and one-click purchasing grew in relevance. All of these changes in the marketplace meant that supply chains had been disrupted forever.
The world after this period was not the same for the supply chain industry, and supply chain professionals had to respond to what was quickly becoming an outside-in, demand-driven world. Company leaders did what they could to adapt. They prioritized projects that reduced inventory and logistics expenses.
Although this helped matters in the short term, professionals risked ignoring the long-term demand-driven vision of the business operating model. Organizations prepared for the rebound while responding to the conditions of the new normal: Effective strategies coupled with a well-defined plan and the right tools helped supply chain professionals alleviate fulfillment pressures and readied managers for market changes in the future.
What are the strategies that helped the best survive? They were then and remain today, the following: Adopt a demand-driven planning and business operating model based on real-time demand insights and demand shaping.
The right prediction and contingency planning tools will ensure a complete view and an effective response to risks such as suppliers going out of business, political upheaval, and natural calamities affecting manufacturing.
Companies then can adjust pricing and promotions strategies to shape demand, move additional product quickly, drive revenue growth, or further expand margins for a high-demand product with limited market supply.
The key is to have the foresight to leverage opportunities and mitigate challenging events so that your business not only survives but succeeds. With the arrival and maturation of cloud supply chain technologies, businesses now have the ability to see exactly where all of their inventory is—in real time—from the store shelf back to the manufacturer.
An agile demand-driven supply chain requires end-to-end visibility across the business from buyers and the market to supply.
With cloud technology, businesses can have it. Build an adaptive and agile supply chain with rapid planning and integrated execution. Once executives are able to better understand and shape demand and risk, they need to adapt their supply chains to changing market opportunities and events.
Companies must deploy dynamic planning capabilities and continually fine-tune operations to ensure responsive agility to meet changing demand. The old model was to wait until the end of the month or quarter to shift production and supply based on shipments and sales.Oct 30, · Supply chain management is the system that connects and integrates the links of sourcing, procurement, conversion, and logistics management.
By understanding how to manage this complex system-and ensure that key business functions are properly integrated-you can increase profits and reduce costs and risks.
Supply chain management linked up all the business software systems at remote location that automatically improved collaboration in all partners. SCM software gives opportunity to share information.
Share information platform keep stakeholders informed, so the whole process of SCM runs smoothly. 6 Strategies for Better Supply Chain Management in the Current Economy Stephen Slade The years from through were notable for their economic volatility, reflected not only in the global economic recession but also the instability of customer demand and rapid movement in raw material, fuel, and commodity prices.
Supply chain managers have seen increasing challenges to create, and keep, efficient and effective supply chain methods. Here we discuss five of the biggest supply chain challenges. Customer service - Supply chain management is all about providing the right product in the right quantity to the right place and the right time.
Management chose to do a strategic supply-chain planning exercise to assist decision making. The Planning Spectrum Strategic supply-chain planning falls in the middle of a decision-making spectrum that has business-strategy formulation at one end and tactical supply-chain planning at the other.
How to Overcome 4 Common Barriers to Supply Chain Collaboration Initiatives February 05, by Josh Noble While business school case studies continue to showcase the value of collaboration between ‘partner companies’, in practice, collaborative buyer/supplier relationships are far less commonplace.