Supply Chain Future Challenges - Essay Example

Supply Chain Future Challenges Introduction Competition is a major challenge in supply chain management. This challenge might be experienced inthe supply chain management for quite a long time. The nature of competition in businesses has taken a different route to a struggle between firms (Taylor, 2007). In order to be competitive in the market, the need for reinvention is important. Reinvention should have a focus on the welfare of the customer. The tentative supply chain market calls upon better packaging of the consumers’ products from companies. This is in terms of how to assemble and deliver products. Information is quite crucial to an exporter or an importer. Information gives the status of shipments, the problems that may cause the shipment to delay etc. New competition looks at the consumer’s lead time, making the execution of orders to be within the required time. The new competition will improve the various management processes involving the customer. This is the relationship between a company and its consumers with information on products’ availability. A successful organization has to lay focus on building customer relationships for example positive treatments towards the customer, determining customer satisfaction in order to achieve company goals. Consumer demand will increase and be different in future after them gaining confidence in the company. Creation of a good relationship with the customers will be the determining factor for growth and expansion of the company. Competition has built a fragile environment for businesses operation. Therefore, need to maintain customers will be of importance to supply chain management. Due to intense competition, there will be requests by the customers to have a wide range of goods for example fresh products of good quality. Impacts of Competition on Future OPSCM Performance Competition will impact the suppliers on cost consideration to the consumer. Due to the new competition, companies will provide good services, short lead time and good order execution. A good management of the all the function in the organization from engineering, manufacturing, procurement, marketing, and finance will ensure the reinventing of the supply chain. The authority of all the functions in the company to coordinate the activities well with autonomy will act as a way to reinvent the system (Harland 1996). The overall performance of the companies will emerge from the good coordination from all the functions to produce quality services. New competition will bring about reduced prices to favour the consumers. This will come up from the attempts by competing companies dealing with the same services need to retain market share. The competition will dictate the ways of the company making it into the top ranks. This will be brought up by efficient production and quality products. Comparison of the supplier’s chain will be the focus of the consumer, due to the need for quality products and efficient deliveries. This will be the base of consumers in making a choice of supply management companies (Harland 1996). New competition will also bring up the need of companies to come up and form larger company to combat this competition. Therefore, the success of companies will be realized from the core problems of supply chains. This will lead to making of a long term commitment to a lasting solution. Due to the rise in demand, or demand driven and supply chain management, the only way out for the companies is to combine forces and be able to meet customers requirements. The combination of companies will help to ensure effective customers service. Networking will be another potential impact which will be as a result of the new competition. Networks can be initiated as personal networks, or business networks. These networks will be directed towards the customers and the suppliers. The general and functional managers will be having a central role in this control. Establishing personal networks between the marketing management function and the consumers’ will be so effective. The relationship created in the networks will give the consumer a positive feeling towards the company. The production department and the suppliers’ networks will be of importance in maintaining continuous flow of raw-materials. Creation of potential suppliers and a good network by the company, act as a good measure to check the raw materials in store. Most companies will be having more than one supplier then; a network infrastructure will be efficient in handling this. For consumer orders to be effectively executed, raw materials from the suppliers will have to be available. Demand vs. Supply will have to be kept at equilibrium. This will act as good way to maintain the consumer in the company (Meltzer 2001). Alternatives to Manage Competition Challenge There are several measures that can be taken by the company to combat competition. These ways are briefly outlined. Supply chain incorporations, this involves the combination several supply chains. This measure involves combined efforts to produce good services for the consumer from different supplying companies, diversifications; this involves the establishment of more than one supply chain dealing with a wide range of products. When companies diversify, competition is well catered for (Van Goor, 2001). Diversification allows the companies to exercise good control over competitive market. The performing product gives the company the opportunity to support the low performing products in the market. This is in terms of; products development, improvement of the infrastructures, and advertisements. Globalisation is another alternative which is more favourable than the rest. Globalisation allows the company to get exposed to better sites. This gives a better chance for the companies to access good raw materials, potential suppliers, more customers, and ready market for investment. This alternative is very suitable in overcoming domestic competition. Access to global markets is suitable for the company expansion; this creates closeness to consumers, also diversifies the risks from the home domestic market and also helps in fighting competition. Conclusion In conclusion, the supply chain management companies will face quite challenging situations in the market. These challenges will vary from domestic market to the international market orientation. Competition as discussed above requires companies’ efforts to apply some of the outlined management alternatives. Globalisation has however been cited as the best way to deal with competition. This is because of the many benefits that are acquired; to the company and the consumer in the quality products. References Harland, C. M. (1996). Supply chain management, purchasing and supply management, logistics vertical integration, materials management and supply chain dynamics. Blackwell, UK. Meltzer. (2001). Defining Supply Chain Management, in: Journal of Business Logistics, Vol. 22(2). Taylor, D. (2003). Supply; A manager’s guide, Addison- Wesley professional Pearson, education. Van Goor. (2001). Demand and supply chain management; A logistical challenge 17th international logistics congress. Thessalonica. Read More