Worldwide economic turmoil on the global supply chain had a serious impact.Reduced demand and price fluctuations, making the bullwhip effect is magnified in virtually.In some manufacturing, changes in demand and volatility that will bring the whole industry chain, the consequences of a sudden cut off the supply chain caused a lot of inventory or production.This shortage of funds, low-margin business will be the fatal blow.Therefore, how to build flexibility in turbulent times as the supply chain, supply chain executives are concerned about.
Turbulent times, supply chain challenges
"Report" shows that over the past 10 years, the enterprise and supply chain is becoming more globalized.1995 to 2007, more than double the number of multinational companies, increased to 79,000 from 38,000, while the number of foreign subsidiaries increased by almost 3 times.In addition to regional expansion, the supply chain now has more companies involved.About 80 of the executives say they expect with the increasing number of third-party partnerships, more and more business is being outsourced.And the development of the supply chain must cope with rapid expansion, but the classification more detailed, more professional product portfolio.In short, these changes have brought many problems.
According to the survey, five major challenges facing the supply chain:
Challenge one: supply chain visibility.70% of the supply chain director said this is the first challenge they face, they can not understand the supply chain, including transportation, inventory, sales information, suppliers, customer demand and other information.Not only is the company's visibility, but also with customers, suppliers, and vendors with the supplier visibility.
Challenge: Risk Management.Risk management has also become a headache for supply chain management problems.Closely linked to globalization and the fact that supply chain risk management to become more difficult, which contains the risk of the supplier.Supply chain executives, the lack of standardized processes, insufficient data and lack of precision of the technique is restricted biggest obstacle to effective risk management.
Challenge three: user demand, that supply chain executives how to better meet customer needs is a huge challenge.At present, only two thirds of the companies to determine customer needs in preparation for exhausted.However, despite the urgent need to communicate with customers, many companies still tend to focus on the work of communication to the supplier, not their customers.
Challenge four: cost control.Supply chain executives found that they have to deal with the daily occurrence of various cost issues, they work to change and enhance efficiency.
Challenge Five: globalization.With the supply network is to expand globally, many companies are facing the problem of global sourcing.
"Compare our surprise there are two aspects, one is the collaboration between business and the lack of customers, while the urgency of risk management and foresight." Sanjeev Nagrath said, "A lot of CEO's answer exceeded our expectations."
Construction of flexible supply chain turbulent times
The challenges of the supply chain both in Europe and the United States or sent to other developing countries also exist in China.Surveys show that many Chinese companies responsible for procurement supply chain transparency is that they are most concerned about and the most headaches.Companies in emerging markets including China, the company established a few posts, chief supply chain officer.
In China and other developing countries, supply chain management, there is a more important challenge is the supply chain management talent management.Asia-Pacific region in 90% of the companies that supply chain management, the larger challenge is how to be responsible for the leadership of the supply chain the ability to have the right to carry out future supply chain management, but also to find the right staff.
"In developing countries, companies, responsible for procurement and supply chain executives are focused on maximum pressure and how to make supply chain more efficient, more flexible and can adapt to the changing market has brought." Sanjeev Nagrath said.IBM Asia-Pacific and China, particularly given the market's attention, the survey also includes more than 30 head of China's supply chain.IBM believes that because China is now the global supply chain, a very important part of many of the world's products are manufactured in China, so China is a key area of the supply chain, IBM Global Consulting Services is a key service.
In fact, in building a flexible supply chain, companies in many ways a lot of room for improvement.For example in the enterprise with suppliers and customers of the collaboration, Sanjeev Nagrath believe that companies with suppliers and external connections between the client and collaboration, transparency is still very low, the transparency extends to suppliers and customers,there is still much that can increase the space.
Cost optimization, IBM believes that fast acting to reduce supply chain approach is occupied by the liquidity and optimize inventory.The other is to rely on supply chain partners to reduce overall procurement costs.
Based on interviews with supply chain executives and combining the results of the current economic situation, IBM proposed the concept of intelligent supply chain.Sanjeev Nagrath explained the wisdom of the supply chain, supply chain emphasizes the advanced nature of intelligence, connectivity.Nature is to use the new technology, such as electronic tags, sensors, GPS and other advanced technology to build an advanced, timely collection of information, and timely feedback to the organization of the information technology.Interconnection is carried out with partners to share information, these partners include the internal, between departments and sectors, including suppliers outside the enterprise, and even the sharing of information with customers.Once the intelligence is beyond these data can be shared in the supply chain, through the analysis of data to truly understand the value of data.
Sanjeev Nagrath believes that the current is improving the supply chain management opportunities, equipment, only a small part of the investment, companies need to focus more on how to build the right business processes and how relationships with suppliers, customers build a better relationshipThis should be established to consider the wisdom of the supply chain into more problems or more problems.
Mr. Sanjeev Nagrath Description:
Mr. Sanjeev Nagrath IBM Global Business Services (GlobalBusiness Services, GBS) a partner, as the global supply chain management business leaders.Mr. Nagrath is committed to helping customers worldwide drive supply chain transformation, GBS is responsible for supply chain management practices and implementation strategies, IBM Global Business Leadership Council member.
Prior to this, Nagrath Mr. competent global traffic and transportation industry.Served as director of the industry during the period, Nagrath through the promotion of Mr necessary to focus on processes and systems solutions to help customers transition to achieve sustained business value.He has been responsible for the GBS of the traffic and transport industry to develop strategies to market and expand the implementation of a traffic and transport industry leaders IBM team member.
Mr. Nagrath relations as the world has also a strategic partner is the United States to provide assistance.Relations as a global partner, Nagrath partner, Mr. and executives to develop solutions to address the business challenges faced by multinational customers.Mr. Nagrath areas of expertise include supply chain management and information technology, strategic planning, and focus on supply chain management, information technology and all the enterprise-wide business transformation initiatives.