–Siddhardha Talluri(Class of 2021, IBS Hyderabad)
Supply Chain was first introduced by Keith Oliver in 1982. It is the sequence of processes involved in the production and distribution of a commodity. Supply Chain Management is ultimately allowing the suppliers to operate more effectively and efficiently across the Globe.
Global Supply Chain Management market value:
According to a new market research report published by Credence Research, the global Supply Chain Management market was valued at US$ 12.96 Bn in 2017 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 12.3% during the period from 2018 to 2026.
Critical Focus Areas of Supply Chain Management:
Every Supply Chain has its own exclusive set of market demands and working challenges but the issue remain the same in each case. Business in any Supply Chain must and should take decisions by considering these 5 areas:
1) Production: It should comprise the master production schedules which includes the capacity of plant, quality control and load that can balance.
2) Inventory: It is the main part of the production and supply and helps in the smooth functioning.
3) Location: It helps to decide the potential path which are accessible to the products and the delivery of the final goods to the customers.
4) Transportation: Air and road delivery is constant for any company but they are at times costly. Strategies can be made which can help in the cost reduction.
5) Information: Accurate information holds the guarantee of customers and suppliers as it can help in making better decisions.
Future of Supply Chain Management:
Scholars in the 21st Century have highlighted the importance of innovative Supply Chain Management. Many companies have improved their growth rate by effective usage of Supply Chain Management. For example, Nike is the largest maker of athletic footwear and apparel. Its overall global business model is based on successful Supply Chain Management. Nike is known for great product quality, innovative product designs, and a unique marketing style. For any Retail company, environmental footprint, quality of products and customer service play a key role and Nike has managed a smart, efficient and agile Supply Chain strategy in these areas.
Supply Chain is the heart of a company’s operations to make the best decisions but the digitalization and rapid increase in technology, companies can now capture, analyse, integrate and interpret high quality real-time data that fuels process automation, predictive analytics, artificial intelligence and robotics which are the technologies that will soon take over Supply Chain Management.
Supply Chain is looking at the 3 biggest trends Artificial Intelligence, Green Logistics and Big Data which help the Companies to play a key role in their Industries. Many companies are already exploring the possibilities. Whereas, a few have already used robotics or Artificial Intelligence to digitize and automate labour-intensive, repetitive tasks and processes such as purchasing, invoicing, accounts payable, and parts of customer service.
aashima aggarwal
Nicely put
Prayaas_IBS
Thank You 🙂