Companies need somebody who can handle complicated supply chains, now more than ever. Here’s why.
Decades ago if you go through the leading management journals and magazines, the chances are that you will see few articles were discussing the significance of (SCM) Supply Chain Management. In the last ten years, though, in publication after publication, a remarkable number of senior administrators have recognized Supply Chain Management as essential to their organizations financial and competitive performance.
This is valid for not just product-based enterprises – electronics and computers, retail, consumer products, automobiles, and the like– amazingly, it is also right for service-focused businesses like Google, etc.
While Google is mainly known as a Search engine, what allows Google to be Google is the precise coordination and planning of the massive infrastructure of assets in its energy-producing facilities and data centers. The variety of Google’s supply chain is awe-inspiring, noted its Jonathon Karelse in a recent interview at a School of Business at a University.
Surely, corporate and enterprise investments in systems, people, infrastructure and planning solutions associated with the supply chain function have split during this period. So what defines this remarkable growth in focus and interest in supply chain excellence beyond industries? Here are the best three reasons:
1) Improving customer views:
Today’s consumer is not the equal as that of ten years ago. Whether we talk of end users like me and you or a Business buyer, today’s buyer wants to waste a lot less time on the buying decision, considers a lot more about information about the product, and, has a way to a lot more information before buying.
The simple result: organizations have to think very creatively about how to give value to their consumers. For example, online retailers like Flipkart are giving an honest run for their money. Still, the economics, challenges, design, and management of the supply chain for Flipkart are a world apart from that for the traditional stores. Not surprisingly, Supply Chain Management is a core support for Flipkart.
2) Product proliferation:
The constant drive to offer significant value to all customers has led to an outburst in the size of product portfolios that organizations provide.
Try easy, back-of-the-envelope estimates to define the number of alternatives that Dell gives for a particular model of its laptop. The result will shock you – it is in billions!! These company can produce and deliver a specific configuration to their consumers on a subject of days. How they do this? You would be correct if your answer is supply chain excellence.
Today, firms produce products in different part of the world, raw materials in another, assemble or manufacture finished products in further another part, and sell to consumers in a completely different geography. What’s new, when products fail, they are repaired by repair facilities in yet different location, without discrediting user experience.
And you may need to think again if you assume that businesses can stop once such a network is designed. Certainly, this arrangement must continuously grow as operating conditions change. This complicated maze of facilities not only performs a severe management challenge, but it also shows companies to political, financial, and natural hazards that are inappropriate in an entirely domestic supply chain.
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