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PRESENTATION TOPIC ON

CHALLENGES OF SCM IN 21ST CENTURY

HARSHAVARDHAN .V 1TJ11MBA33

14/04/2013

T JOHN INSTITUTE OF TECHNOLOGY

Meaning of SCM
Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
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Challenges of SCM in 21st Century


Supply chains have become more global as a direct result of structural changes in the world economy. In addition, they have become more virtual as companies outsource key supply chain functions. These two factors have resulted in SCM becoming a more important determinant of competitive advantage than ever before. They have also made SCM more complex than ever before. In developed economies the continuing shift in emphasis away from manufacturing and towards the provision of high-value services will have a major impact on the essence of SCM in the coming years and decades.
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In particular, it presents five powerful challenges that can help you move on from the linear tactics of the past, and take concrete steps toward a more dynamic future.
1. The world of manufacturing has changed, and you need to change with it. Over the past 25 years, outsourced, multi-tier supply chains have radically changed the face of supply chain management. Many manufacturing firms now have little supply chain visibility or control over there partners. It has became more and more difficult to make decisions or take action, yet the need to do so is more acute then ever. Manufacturing firms need the agility to respond to constant changes in supply or demand.
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2. Legacy planning APPLICATIONS wont cut it any longer. Manufacturers are discovering that traditional planning and optimization applications were never designed for todays supply chain challenges. The fatal flaws of supply chain planning apps: Used by a small number of planners; do not seek transparent input from all stakeholders. Designed around a single enterprise focus. Produce a single plan, not several what-if scenarios. Produce plans based on extremely complex models that are difficult to adjust to rapidly changing conditions. are dependent on the accuracy of the mathematical model, which cannot capture perfect information from all sources. are based on a batch process run once a month or week.
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3. You dont need to rip and replace your ERP system for better results.

you invested big time in your ERP system, and it works; but its time to extend it. The real problem is that many legacy planning modules have been added onto these ERP systems, and these add-ons have now outlived their usefulness. Supply chain solutions should be able to pull data from multiple systems (including ERP), provide tools for analysing it, and deliver a single version of the truth to many parties to support collaborative chain management.

14/04/2013

T JOHN INSTITUTE OF TECHNOLOGY

4. In uncertain times, trust is everything. A defining characteristic of supply chain maturity is the level of trust that exists between business partners. Trust is a key element because it demonstrates integrated business planning in supply chain. 5. For best results, optimize your processes, not your plan. Companies today need technology that provides quick decision support for managers. Key strategic elements: Agile response. Live collaboration. Flexible what-if testing.
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THE OTHER CHALLENGES

The struggle to connect outsourcing and lean. Being in control when youre not in control. Sustainability. The role of supply chain in a company. Increasing volatility. Flexibility. Simplification. Collaboration.
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14/04/2013

Thank you

14/04/2013

T JOHN INSTITUTE OF TECHNOLOGY