Supply chain management and execution systems continue evolving to better support ever-changing business drivers. Current supply chain systems primarily focus on:
- Improving availability and reducing out-of stock situations
- Reducing overall cost and driving sound financial returns
- Fulfillment efficiency
Because of global economic trends, energy consumption awareness, increasing customer empowerment, changing customer behavior and several other factors, future supply chain systems will be required to take the following into account:
- Collaborative approaches for warehousing, transportation and information sharing
- Built-in intelligence for better inventory tracking, in-store and pipeline availability and fulfillment details, etc
- Flexible planning at a raw material level to cater to fluctuating customer demand and trends
- Reduced energy consumption and traffic
When the game changes, so do the rules that measure it. This includes KPIs that measure current supply chain design, for example, inventory availability, fulfillment efficiency and cost reduction; as well as financial KPIs like ROI, gross margin, etc. These will all be augmented with energy consumption, traffic congestion, infrastructure utilization, information and systems utilization, etc. Future supply chain systems will provide clear benefits to society, industries, companies and end consumers who are doing their part to help make the planet a better place to live and thrive.
Posted by: Padman Kurumpanai
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