Impactful Trend in Supply Chain Management

Question: Discuss about the Impactful Trend in Supply Chain Management. Answer: Introduction: Supply chain management entails the management of the flow of services as well as goods. In the process, there is movement as well as storage of the raw materials, work in progress (WIP) inventory and the finished products from the original point to their consumption point (Stadtler, H. 2015). The objectives of this process are to create net value, worldwide leverage logistics, and build a competitive infrastructure, synchronizing demand with supply as well as measuring the performance. In line with the question, one impactful trend in supply chain management over the last quarter century is the supply chain look to go digital (Hugos, 2011). Its clear that technology has moved a new wave of productivity across the organizations by digitalizing primary financial as well as the business process. The change in technology is disrupting the traditional operations which force every business to be digital so as to keep up with the prevailing competition. With this competitive advantage over those who have not adopted the transmission ensures that the going concern is guaranteed.( Umeda, S. and Zhang, F. (2006). Despite the prevailing factors, organizations should understand that adding digital technology is not the answer. Its important to understand the elemental nature of the digital technology changes into the organizations operations Digital technology changes the role and value of data, it alters the organizations points of control, destroys or creates business operating models as well as shifting the level of value creation at various levels of the value chain (Hugos, 2011). Therefore, for the changes to create significant improvements in the organization, the supply chain should be reimagined as a digital supply network able to unite physical flow, talent, finance as well as information. The organization should also be able to reinvent their supply chain strategy. As such the new breed of the supply chain will be more connected, scalable, intelligent as well as more rapid in comparison with the traditional supply chain management. Therefore the organization will have a potential in developing new synergies, be able to relate more fully to customers as well as rapidly reach new markets (Stadtler, H. 2015). The organization realizing these advantages are more likely to have a better market as well as experiencing enhanced financial performance. The Digital supply chains will also have the capacity for extensive information availability. It will also boost superior collaboration as well as communication across the digital platform leading to improved agility, reliability as well as effectiveness (Hugos, 2011). Digital technology in their supply chain will also assist organizations to mass-produce capabilities as effectively as they mass-customize services or goods. Digital supply chain also enables the organization to do away with wastes by increasing their efficiencies and therefore facilitating greater profits. Organizations with a digital supply chain are better able to move assets, resources as well as inventory to the expected place at any given time (Roberta Pereira, et al. 2014). This is crucial in reducing the cost by responding proactively to manufacturing as well as transportation risks. The transition is also crucial in that it necessitates the bringing of the dealers, the supply chain as well as the customers close together than ever before. (Rota, K., Thierry, C. and Bel, G. (2002). The modern consumer is very informed, connected as well as uses the latest digital technologies. Therefore in implementing and transforming their supply chains, organizations should cater for the needs of these growing category of customers (Roberta Pereira, et al. 2014). Failure to make such considerations, the organization risk their marketing leading position. In the transformation from the traditional supply chain into a digital supply network, it's crucial an organization follows a systematic process. In doing so, the organization should determine its digital supply network vision (Stadtler, H. 2015). The vision becomes the Holy Grail responsible for driving the transformation process. Without it, the transformation process will not be effective. The organization should also convert the vision into the actual business outcomes which need to be realized. Above it all, the business should conduct a prime value Chain analysis which is a top-down approach consolidating all inputs and activities required to assist a business outcome (Roberta Pereira, et al. 2014). Through the analysis, the organization can determine priority business outcomes as well as identify individual changes to be effected across the organization. As expressed by Accenture on what is the computerized store network, that you should reevaluate the production system. What's more, recollecting Bill Gates, if we don't watch out for the basics, innovation will just put a focus on wasteful procedure. In this 2016 Supply Chain Trend, we are about-facing to the fundamentals. The capacity to acknowledge advancements and exploit the cooperative energy impacts of individual developments is a center ability of future-situated organizations. Not dismissing the essentials while sifting through what is by and by critical, requires our full consideration and ceaseless advancement. All things considered, we achieve our cutoff points over and over and need support, e.g. from operations research, which furnishes us with astute necessary leadership calculations empowering us to stay aware of today's quick paced working environment. As indicated by Grant Marshbank, COO of VSc Solutions, supply chains will confront various difficulties, he said: "Production network chiefs are as of now under tremendous weight to adjust to turbulent economies, work issues, and venture into worldwide markets. (Roberta Pereira, et al. 2014). "The terrible news is that the rate of progress isn't going to back off. The uplifting news is that developing patterns hold chances to decrease both expenses and carbon impressions, and empower outstanding client administration in the meantime." "Innovation will just convey the planned positive results on the off chance that it actualizes with methodology and operations that hold fast to best practice in-store network administration. Get rudiments right first. Not even the most intelligent innovation can make up for not as much as best practices," he included. (Sezen, B. and Kitapi, H. (2007). "Continuous framework combination, secure information trade, permeability and traceability between different structures over various supply chains and industry verticals are only a portion of the alternatives efficiently accessible through innovation," "The best hindrance to the appropriation of these advances is an absence of comprehension of the advantages consolidated with a desire of high execution costs." Propels in innovations accessible to enhance supply chains have made speedier execution times a reality. "It is less demanding and more moderate for both of all shapes and sizes organizations to run live with another framework inside two weeks of settling printed material," clarified Marshbank. "Most production network experts as of now have a sound vital arrangement set up. Rather than being sold another framework, they may very well need some direction on the best way to settle their agony focuses by repurposing their current innovations." "Having the capacity to mix frameworks and actualize apparatuses on an amusing premise is the thing that sets the change without bounds separated from the inconvenient venture comprehensive programming bundles that were prevalent in the past time," said Marshbank. In conclusion through the discussion, its clear that technology plays a major role in the supply chain management, and therefore organizations should take great precautions when incorporating it in the process. Affonso, R., Marcotte, F. and Grabot, B. (2008). Reference Affonso, R., Marcotte, F. and Grabot, B. (2008). Sales and operations planning: the supply chain pillar. Production Planning Control, 19(2), pp.132-141. Hugos, M. H. (2011). Essentials of supply chain management (Vol. 62). John Wiley Sons. Rota, K., Thierry, C. and Bel, G. (2002). 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