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Long-term trends pose challenges for supply chain managers and make increasing requirements on the strategic management expertise of today’s companies. These trends include ongoing globalization and the increasing intensity of competition, the growing demands of security, environmental protection and resource scarcity and, last but not least, the need for reliable, flexible and cost-efficient business systems capable of supporting customer differentiation. More than ever, modern supply chain managers are confronted with dynamic and complex supply chains and therefore with trends and developments that are hard to predict
In years to come, supply chain management will therefore take on additional strategic tasks that extend beyond its current more operational scope of activity. In order to respond to these changes and remain competitive, supply chain managers need to be able to identify and understand new sustainability issues in their company and business environment
This calls, especially in respect of global, international, and fragmented supply chains, not only for highly efficient supply chain operations, but also for networking skills that must continuously adapt to sustainability demands to create sustainable
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Though the strategic goals executives are setting suggest a hope that more predictable business conditions will prevail over the next five years, respondents are divided over how well their companies can manage the challenges (Exhibit4). This finding holds true for large and small companies alike and among executives in different functions.
The good news is that on the three challenges cited most frequently (global competition, rising consumer expectations, and complex patterns of customer demand), the highest shares of executives say their companies are prepared to meet those challenges. The bad news is that the shares saying their companies are well prepared are still below half.
Most executives recognize the importance of managing the functional trade-offs related to these challenges and think that their companies are effective at doing so. Among trade-offs, the highest share of respondents— percent—say balancing cost to serve and customer service is important to their companies’ supply chain strategy. The lowest share ( percent) say balancing centralized production against proximity to customers is important. Respondents also report that the managers who make decisions about supply chain trade-offs are well informed.
Exhibit4
Facing the future
Yet the cross-functional discussions that companies need if they are to make informed decisions are not happening often. For each of the six trade-offs the survey explored, regular cross-functional meetings are cited as the most common process for making decisions, but between and percent of respondents say their operations teams never or rarely meet with sales and marketing to discuss supply chain tensions. Furthermore, respondents across functions say sales/marketing has the most difficulty collaborating with other functions, with percent citing a problem between that group and manufacturing, and percent between it and planning. Additionally, one-third of respondents say the biggest barrier to collaborating when managing trade-offs is that functional areas don’t understand their impact on others.
This disconnection is likely exacerbated by the relatively low levels of CEO involvement reported: the vast majority of CEOs do not actively develop supply chain strategy or work hands-on to execute it. Respondents do, however, expect more CEO involvement over the next five years—a hopeful sign for companies aspiring to mend key cross-functional disconnections.
As technology and business development strategies are growing, some of future challenges could be:
1. Growing market and needs
2. Availability of some marketing software and apps
3.Huge markets and locations...
Companies should adopt new system and stay up to date with technology and market needs ..
Thank You
In the era of globalization the perspective companies are need to engage with multiple supply chains rather sole supplier; also require a good meditation on quality, cost, dependability, flexibility, and time frame. For that, SC managers need to be capable on individual offerings for meet the customer requirement. Understanding of different stakeholders and their mutual cooperation is the main challenges of the future supply chain.
Today’s market leader need to intensive magnification of the growth, market share, and new capture. Also need strategic planning to remain stable for a minimum time frame and then slowly going ahead. To tackle the situation, need to know about the market volatility, economic trends of a particular country.
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