The Future Direction of Supply Chain Management

By

TEMIDAYO AKENROYE
(PGD, M.Sc, MCIPS, MILT)

Date: 18th June, 2009

Temidayo Akenroye

Lecturer - Salford Business School, University of Salford Manchester, UK - Lectures M.Sc international business students( Logistics & Supply Chain)

Training/Consulting - Envirofly consulting(Procurment, supply chain & CSR , sustainable procurement, Delivering CIPS courses and deployment of supply chain excellence programme)

Industry (Manufacturing & Building ) - Air handlers Northern & Great Hopewell( Value added procurement & logistics process, EMS ISO 14:1000 project, Suppliers relationship Initiative, Inventory control and Continuous improvement programmes)

Financial Service Sector - JIL Insurance ( Cost savings realisation in purchasing function and Contract management.

Supply Chain Management

Supply chain - A network of organizations connected in their processes and activities, with the ultimate goal of delivering value to the final customer. (Christopher, 2005 p57.)
This new discipline was a response to changes in prevailing trends in business strategy, which in turn demanded that internal functional self-interests be put aside to achieve a greater good of delivering better value to customers

1. Lee, (2000) Creating value through supply chain integration. Supply Chain Management Review. v4 i4. 30-36. 2. Christopher M (2005) Logistics and supply chain management: creating value-adding networks. 3rd edn, FT Prentice Hall.

Conventional Supply Chains

-Traditionally supply chains have been characterized by armslength, even adversarial relationships between the different players. - There has been limited history of sharing information either with suppliers or customers.

- Conventionally supply chains have often been designed to optimise for cost and/or customer service
- Many organisations are at risk because their response times to demand changes or supply disruption are too long.

The Challenge
Today, supply chains become more complex as a result of its global orientation. The dynamics of global market have resulted in serious pressure and disruptions to supply chain activities Supply chain vulnerability due uncertain and turbulent markets (e.g. environmental disasters, 9/11, stick actions in Ports ) Therefore business as usual is often not an option. Hence the need for the new direction

The New Direction

Due to the emergence of the value-conscious customer, uncertain and turbulent markets, the field of supply chain management is evolving remarkably fast, now encompassing the following: Strategic Supply chain management- creating and sustaining competitive advantage through full integration and efficient supply chains Creating the Resilient Supply Chain- A high level of collaborative working across supply chains can significantly help mitigate risk Agility- the ability to respond rapidly to unpredictable changes in demand or supply in uncertain markets ( From PUSH to PULL)

Delivering sustainability through supply chain management

Time compression in the supply chain Development of supply chain relationships initiatives Synchronisation- Towards seamless and uninterrupted flows of information, goods and services using information technologies for supply chain management

Conclusion Ultimately, the purpose of supply chain management is in fact integration and ultimately supporting the brand in the market place (Lee, 2000) To this end, supply chain management must balance downward cost pressures and the need for efficiency, with effective means to manage the demands of marketdriven service requirements and the known risks of routine supply chain failures

Thank you

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Questions

Suggested Readings

Christopher M (2005) Logistics and supply chain management: creating value-adding networks. 3rd edn, FT Prentice Hall.

The Relationship-driven Supply Chain: Creating a Culture of Collaboration Throughout the Chain (Hardcover) by Stuart Emmett & Barry Crocker.

Supply Chain Management: Strategy, Planning and Operations (Hardcover) by Sunil Chopra & Peter Meindl.

Alan Rushton, John Oxley, Phil Croucher (2002), The Handbook of Logistics and Distribution Management, 2nd edition, Kogan Page Limited.

Lee Krajewski, Larry Ritzman, (2002), Operations Management, Strategy and Analysis, 6th Edition, Prentice Hall, New York