Supply chain management’s targets and tools

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In this data driven world, where each activity could be executed with information backing, case scenario evaluation and reference points diagnosis, taking a supply chain decision based on last year’s bench-marking would be foolish thing to do.

For zeroing down to right output one must pre-know the expected output and the tools needed to accomplish the same.

In supply chain management the current output that is expected out of the team of sourcing professionals is different from earlier defined goals that was centered solely around cost. Below are the three key outputs expected out of supply chain management departments:

  1. Development of products
  2. Differentiation of products
  3. Quality scale-up of products
  4. Lastly, Best cost of the products

Now you see, that stand alone cost target is scaled to development, differentiation and quality level targets. With this sudden increase in number of areas that sourcing professional need to address on daily basis, one should always keep an eye on tools that might come in handy for delivering on expectations.

For zeroing down to right output one must pre-know the expected output and the tools needed to accomplish the same.

In this technology addicted world where different operations are tapping into various by-products of technology to streamline their work, why should procurement department be late to the party hosted by IOT. What we are trying to get to is, procurement/sourcing or supply chain management should leverage on big data/IOT/technological platforms to harmonize their operations and deliver on this extra output, which we are sure will double up with new variables in coming days.

This analytical tools will make supply chain management team more flexible, good in predictions and efficient in long run.

To surmise, supply chain management teams will have to look beyond cost in order to accomplish their procurement targets. They could achieve this targets at much faster pace by partnering with right tool partner, credibility of who will be on the grounds their tools scale. When we say scale, it means tools ability to accommodate huge data points followed by analysis of the data points , eventually ending up by predicting the next year’s volume, critical supplies and others.Major USP of the tool will be on the grounds of its predictions evaluation.

For more trends please follow

Sourcing Trends

 

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