Across the globe, manufacturers are accelerating their production volumes in an attempt to grow and expand their markets. This sudden upsurge can be attributed to leveraging new digital technologies and increasing customer demands. This necessitates working with a high degree of precision at various stages of the supply chain, which leads to complexities and risks arising at various levels of production. Since a high-level supply chain is made of inter-dependent processes, a complexity arising in one of them can immensely affect the next-in-line.
Let’s take a look at the three main sources of complexity in the supply chain that need to be addressed to reap operational efficiency and growth.
1. Meeting Customer Demands
With industry segments like retail growing at a fast pace, manufacturers are expected to increase production in equal measure. Since marketers need to maintain strict schedules for product deliveries, even one small loophole in the supply chain can create havoc. There is also the need to include specialized processes that cater to the customization demands of customers, and this introduces new complexities.
Another issue is that customers are demanding end-to-end visibility in supply chain activities. They want to know the source of the raw materials, materials used for packaging, and to track product movement to warehouses or retail outlets. In the past, customers did not go beyond the final product, but today, complete information needs to be provided before the issue of the purchase order.
2. Meeting Globalization Demands
Globalization has increased the prospects of reaching out to customers in new markets, while exposing companies to greater risk and competition. Sourcing raw materials from local markets, managing customers and suppliers from a different culture, setting up HR management on a global scale, managing natural calamities, and meeting international regulatory compliance requirements are some of the complexities that globalization has introduced. Creating supply chains in global locations and ensuring they are bound by a common network adds to the infrastructure and IT complexities, as well.
3. Overcoming Internal Pressures
The third and most important complexity for supply chain arises from within the manufacturing organization. Internally, the supply chain is made of multiple processes that are taken care of individually by various suppliers. The delivery of the final product depends on how seamlessly all these processes operate. Any delay or issue in one line of the chain can affect the time-to-market.
Another internal factor that introduces complexity is new technology integration. Even if integration is completed on time, adoption takes time to trickle down to the executive level, and there is also the additional pressure of conducting training sessions. In addition to this, omni-channel deliveries add to the existing complexities when logistics is not able to act in a timely manner.
A disjointed and fragmented set of processes, tools and systems is counter-productive to the supply chain process. World class manufacturing needs a solution that can help engineer responsive business processes and adapt to changing requirements. Infoways delivers smart ERP solutions that can help accommodate the changes in technology and innovation, and manage complexities that arise out of globalization and internal pressures. Our innovative product, Infor LN (formerly called Baan), offers an integrated end-to-end ERP solution that delivers the required agility and a faster Return on Investment. Are you looking to implement an ERP solution, or upgrade your existing ERP to manage supply chain complexities? We can schedule a demo with one of our experts right away.