5 Supply Chain Management Trends Business Organizations Need To Monitor This 2016

According to the COO of VSC Solutions Grant Marsh bank supply chain management continue to face a huge number of challenges, he says “that the supply chain managers are already going through a huge pressure in order to adapt to turbulent economies, Labor issues and their expansion into the global markets. The bad news here is that the rate of supply chain management is never ever going to slow down, and the good news is that the emerging trends would continue to hold opportunities reducing costs and carbon footprints enabling exceptional customer service at the same time.Supply-Chain-Management-Trends

Collaboration is the king: Organizations would here expect things in order to work together and collaborate, full integration of all systems is the goal and there would be a lower tolerance for the costs and time in realizing the need. This collaboration would drive in more number of people towards the platform as a service (PAAS) offerings, where they have platform rather than dealing with systems as a separate entities. The shift would here again require additional understanding of they work together.

Nearshoring: Nearshoring is when the business organizations choose to move their production closer to the end user, rather than setting up factories in the far flung countries with lowerLabor costs.And as the global economy manufacturers these days are restructuring their supplies by reshoring their operations closer to their homes. Nearshoring here offers you with huge advantages like less distant time zones, greater and better security process over all the intellectual properties, increased customer service responsiveness and the last but not the least decreased turnaround times.

Collaborative relationships: For many years the supply chain management experts have been predicting a greater collaboration between the retailers and the logistic providers. However the recent advancements in information and technology have shown and set the stage truly for an integrated supply chain partnerships. The ability to market the un- utilized capacity has spawned up the new virtual market places for a shared supply chain planning service.

Cloud transition continues: In 2016, the costs would prove to be a huge driver to the cloud for those specific organizations who are still running and using these legacy applications. The challenges in terms of the infrastructure, maintenance and the Labor costs would here necessitate all their transitions to their cloud based services. Four out of the five new buyers are looking out to the cloud simply because they do not want to deal with the infrastructure labor and the additional layers of responsibility and risk. One of the biggest trend that we generally have been seeing right now is that many of the business organizations are now transitioning towards the cloud computing process due to an aging workforce.

EDI Persists: Electronic data interchange would here continue to be the most important trend with more people subscribing. Organizations who have not used a formal process in the past would continue finding it difficult to exist without using the EDI. In the whole 3PL and whole sale distribution world organizations need to adopt EDI to stay competitive with their vendors. We see more and more partnerships occurring to embedded EDI in applications. Organizations generally believe that the adoption of AS2which could generally be used as a communication platform would continue to increase as it’s completely free.

To conclude these are the long term supply management trends that already have a huge effect on our day to day logistics, which is why it is necessary for the supply chain managers to stay ahead on the latest technologies helping the logistics provider adapting to the new normal.

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1 Comment

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    Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. In an example scenario, a purchasing department places orders as its requirements become known. The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand. Information shared between supply chain partners can only be fully leveraged through process integration .

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