dimanche 6 juillet 2008

10 best reasons why Supply Chain is the future.

  1. Raw materials, ressources (human and logistic wise as well) and getting scarce.
  2. Corporate competition is getting tougher and tougher. New positionning have to be found in order to differentiate yourselves from the others... Supply Chain management can offer that.
  3. Quality and speed are becoming increasinlgy crucial point from a sales point of view. Because some sectors are highly competitive (e.g. electronic products have a very short lifetime - very fast outdated)
  4. Have I already mentionned about reliability ? Getting its order on time,... (crucial point from a stress and business point of view)
  5. Main cost cuts can happen there - there is huge room for large improvement (transportation, but as well from an inventory management...), because not considered as that much "strategic")
  6. The corporate world is getting global, interconnected... Intercontinental connections are getting easier (meaning that "international", at least from a European point of view, is already to be considered as a standard). It is impossible for Companies nowadays to not deal with foreign partners... relationships have to be organized. It request as well a bigger flexibility (earthquake, wars...)
  7. Customers needs are getting more and more complex. Standard goods for standardized tastes are not enough any more. Welcome to forecasting and complex inventories where codes are just different from a detail point of view).
  8. Key when launching a product. A wrongly forecast supply means loss of market shares, and profits ! Not enough stock, when the demand is skyrocketing, and when the production lead-time is more than 3 months... brrrr, what a nightmare...
  9. Controls the whole "Chain" (I know it sounds silly), from product design until stock presence (and regular replenishment) on the shelves. Coordination management. A second control layer that makes sure everyone is on the same page.
  10. Is supply Chain just about logistics, and inventory management ? Very diversified, jobs there entails low-skilled workers to very educated statisticians... you can make a carreer out of this.. it might englobe other functions in the near future... a great area of creativity (which may sound strange).

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