Posts Tagged ‘supply chain’
Solving Global Supply Chain Complexity
The Global scenario of Supply chain is complex attributed to many factors. Locally, supply chain is considered to be very helpful and conducive but it becomes bit compounded when it comes in term with technical complexities like non-linearity, multiple entities, non-aligned systems and ambiguous data standards, cultural difference across at different locations in the Globe.
This is one facet; the other complexity of global behavior is competition customer segments, congested channels and a vast array of products combining it to be a typical global supply chain. This already complex situation further get aggravated with many a number of added elements like competition, industry dynamics, the disruptive technologies and behavior that hinders the overall operating environment. The other common business issues of concern are use of latest technology and to remain best during the process.
Thus good management can be path and solution to the problem of global complexities of supply chain as handling with perfection of the underlying basics, visibility, integration and risk management. Whereas execution, cost, quality and service all are equally important as part of good management.
In order to achieve better management goals it is the visibility and integration that plays very important role in controlling flow of information in a global supply chain at different global locations and situations among suppliers, partners, providers, channels and customers. Real time visibility and its response to the situation as interpreting changes in the supply chain for better gain maximize profits and help system to run smoothly. It also drives minimized inventory risk, effective utilization and optimization of fixed assets. Risk can be managed tightly matching demand with supply while contacting for key material supply.
At the same time processes of supply chain management too should not be ignored as they let operations to work, effectively. There should be a holistic view and approach to hard work, network, financing, facilities and above all the people those are working. The aim of all the operations should be quick response from the operations, lower total cost and maximum liquidity.
Thus all these necessary steps if worked out properly can heavily aid a company in complex supply scenario.
Subscribe to the comments for this postSupply Chain Risks and Measures
In a recent time, supply chain companies have suffered 58% financial losses due to the disruption over a period of time. The disruptions that led to financial losses for the supply chain companies are accounted as failing to meet demand, rise in prices of raw materials and shortages, change in customer demand, shipment delay, and damage, misdirected.
However, companies to some extent have changed their strategies to counter losses; they have gone global in sourcing as well as selling to the new regions and are adding new carriers, forwarders logistics and distribution partners to their network. This new trend has led to the new security concern developing into a new level of regulation on global shippers. This tendency has turned attention of the companies toward supply chain risk management and adopts new processes and technologies to make supply chain risk resistant.
The best way as to get over current scenario of Supply Chain Risks is to manage and assess logistics congestion and capacity, profile of suppliers, profile of countries, and non environmental catastrophic events.
In Globalization Outsourcing Companies Turning to Model of Supply Chain Unit
With rapidly increasing sphere of outsourcing that occurs on one to one basis between organizations located at distinct positions in different countries, the outsourcing companies are working on models similar to a typical manufacturing supply chain unit. Companies are using extensively build and complex services supply chains to lower down their costs and address all the possible threats of the competitive globalization in outsourcing as recently reported by Equa Terra’s in survey of top outsourcing service providers.
As in this process of employing supply chain management by outsourcing companies the outsourcing companies generally deal with diverse and more widely distributed large organizations forming hundred types of associations with several service providers, globally. But there equally a problem lies with most of companies that they all are not up to the mark on the two most important factors current performance levels and current direct cost. According to the report, the performance of the developing quality outsourcing business cases is mediocre. Even to manage global services on the back end is proving equally challenging in present competitive period.
Now every company is moving towards with more focus on business process efficiency and effectiveness. It is expected that for outsourcing Industry business process and IT outsourcing will increase in 2008 from previous year 2006 and 2007 levels. The other important change in outsourcing is more focus on short term return on investment that will slower down the speed of upfront investment. And above all the most noticeable change is increased demand and supply for knowledge process outsourcing in area of engineering, research and development, financial modeling and analytics and legal process work.