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From everyday traffic jams to delayed trains to long queues at the airport, disorder
continues to prevail in India and the developing world. Growing up in this environment, I
have experienced how chaos perpetrates inefficiencies and affects the quality of life.
Streamlining these widely varied systems and providing effective supply chain solutions for
one billion people is a complex problem, but one that I believe can be achieved with the
right amount of focus on supply chain research. With the whole manufacturing and
transportation industry under considerable cost pressures, focus on effective supply chain
systems has never been higher.
High inventory liability, the inability to align supply with demand in real-time, and a lack of
alternative supply sources are among the many issues that take their toll on todays supply
chains. The typical supply chain relies on the skills and resources of hundreds or perhaps
thousands of suppliers each of which occupies a link on the chain. When one link cant
see what another is doingor, when one is isolated from the rest by narrow thinking and
processesthe entire supply chain can suffer.
SUPPLY
CHAIN
VISIBILITY
GLOBALIZATION
INCREASING
CUSTOMER
DEMANDS
COST
CONTAINMENT
RISK
MANAGEMENT
2) COST CONTAINMENT:
A) Cost containment is critical. But are we looking in the right direction?
Cost-cutting intentions are obviously strong; but are the supply chains looking in the
right areas? Are they selecting targets strategically? Previous research suggests some
uncertainty here.
3) RISK MANAGEMENT:
A) Previous research suggests that supply chain risk management is not a priority for
most of researchers. But renewed research focus on risk management can help
businesses be more prepared to deal with unexpected hiccups. But how?
For companies, supply chain risks are many and varied. Increasing globalization and
new economic realities have spawned even more.
However, with sophisticated demand planning, variable cost structures and better
integration with suppliers, the smarter supply chain is more capable of flexing supply
up and down with demand.
To help identify and prepare for the unknown, the smarter automotive supply chain
equips itself with advanced business analytics. Instead of simply responding to
changes it senses, the smarter supply chain uses real-time information and
sophisticated modelling to predict outcomes and take appropriate actions ahead of
time.
5) GLOBALIZATION
A) Do operational issues impede globalization progress of supply chains?
In the early stages, we handled the cultural and operational challenges of
globalization very poorly. We still act very domestic today; its difficult to change
behaviour. Supply chain executive, US OEM
B) How can we facilitate globalization using common processes and terminology?
Instead of running each facility separately, the smarter supply chain manages
resources globally matching demand with sourcing and manufacturing capacity
around the world. Through intelligent business analytics, it tracks and synthesizes
demand and supply trends, evaluates complex what if scenarios and acts based on
the most likely outcomes.
REFERENCES
1) The new supply chain challenge FM Global
2) Abhijeet Ghadge, Samir Dani, Roy Kalawsky, (2012) "Supply chain risk management:
present and future scope", The International Journal of Logistics Management,
3) Supply chain Risks and Opportunities - IBM