- Raw materials, ressources (human and logistic wise as well) and getting scarce.
- 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.
- 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 Because some sectors are highly competitive (e.g. electronic products have a very short lifetime - very fast outdated)
- Have I already mentionned about reliability ? Getting its order on time,... (crucial point from a stress and business point of view)
- 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")
- 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...)
- 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).
- 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...
- 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.
- 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).
dimanche 6 juillet 2008
10 best reasons why Supply Chain is the future.
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