Supply Chain Management

In section 2 we discussed what could look like very many confusing choices to make in finding suitable customer opportunities and framing an effective value proposition to provide the opportunity for customer satisfaction. We need to find a way to simplify these choices and in this section we do this by the use of the concepts of order qualifiers and order winners.

To date, our world market is dominated mostly by many well established global brands. Over the last three decades, there has been a steady trend of global market convergence – the tendency that indigenous markets start to converge on a set of similar products or services across the world. The end-result of the global market convergence is that companies have succeeded in their products or services now have the whole wide world to embrace for their marketing as well as sourcing.

What’s the future holds for supply chain management? The future of supply chain management is the future of business management when there will be no business that is not part of a supply chain. The paradigm of business management will soon be converged to the paradigm of supply chain management. To precisely fortune-tell the future of supply chains is meaningless.

But what’s useful is to identify and explore some challenges that we better prepare ourselves for. Three key challenges have been identified and discussed here.

For years, researchers and practitioners have primarily investigated the various processes within manufacturing supply chains individually. Recently, however, there has been increasing attention placed on the performance, design, and analysis of the supply chain as a whole.

This attention is largely a result of the rising costs of manufacturing, the shrinking resources of manufacturing bases, shortened product life cycles, the leveling of the playing field within manufacturing, and the globalization of market economies.

One of the important issues in supply chain management is to design and plan out the overall architecture of the supply chain network and the value-adding flows that go through it. This means that managers should step back and looks at the supply chain as a whole and formulates strategies and processes that maximize the total supply chain value-adding and minimizes the total supply chain costs.

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