The most important drivers for supply chain designs have been
to improve cost efficiency and on-shelf availability with a strong focus on
sound financial figures. The return on investments and the brand value were the
major concerns. Studies by the Institute of Global Futures suggest that we are
headed towards an era of greater complexity with more competition and faster
change. While technology will continue to serve as a primary enabler of market
growth and competitive advantage, its exponential growth into newer areas of
the supply chain will demand an overall transformation of the supply chain
itself.
Over the time, there has been a consistent convergence of
the physical and digital infrastructures in the world. With the advent of
sensor technologies, any activity or process can be measured. Different
entities can collaborate without actual human intervention. Different supply chains,
transportation systems, financial markets and other external systems can all be
interconnected and work as one element. The next generation of supply chain
will be more proactive and predictive. Hence, the key trend in the emerging
supply chains will be collaboration.
A smart supply chain will take advantage of all forms of
interaction – not just with customers, suppliers and IT systems but also among
objects that are flowing through the supply chain. Besides the creation of a
more holistic view of the of the supply chain, the extensive inter connectivity
will also facilitate collaboration on a massive scale. These highly connected
networks of the supply chain will be enable firms to make decisions
collectively with other parties involved.
Some characteristics of future supply chains
-
Smarter chains
With the emerging use of technologies like
sensors, RFID tags, cloud based ERP systems, meters and GPS, the supply chains
will be more transparent and visible. The supply chains will rely less on labor
based tracking and will shift to a more self tracking system where objects like
containers, trucks and products themselves provide real time updates of their location.
-
Business intelligence and predictive forecasting
There will be shift in traditional forecasting
methodologies to better real time forecasting techniques. The firms will prove
more capable in anticipating customer demand and identify profitable markets.
Customer and supplier data will serve as a weapon for competitive advantage.
-
Collaborative IT infrastructure
Collaboration between all players in the
supply chain will prove to be the ultimate competitive advantage. To realize
its potential and enable business models lie Just in Time production, the firms
will invest in robust interconnected IT systems.
-
Flexibility
To leverage resources optimally, the supply
chain would have intelligent modeling capabilities. Simulations will allow
supply chain managers to see the cost, service level, time and quality impacts
of the alternatives being considered.
Supply
chains that react to customer needs alone will find it difficult to survive in
the long run. Only collaborative supply
chains will shape the future success of the firms and their partners. But
collaborative approach can mean that the overall cycle of decision making will
be slower owing to the fact that a consensus should be reached between all the
players involved. So will this impact a firms profit making strategies in the
future or will they settle for a more publicly approved strategy?
References
1) http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&subtype=XB&htmlfid=GBE03163USEN#loaded
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