Supply chain management (SCM) is simply the process of directing, controlling and monitoring the movement of goods from their point of origin through to manufacturing, production and distribution to the point of consumption by the final consumer (Liang, 5). Like many other areas of management, the practice has undergone radical changes over the past two decades. The changes, most of which are propelled by technological advancements, range from cheaper manufacturing methods to shorter and more effective supply chains. Further, supply chain options have complicating sourcing decisions. The fact that these changes have occurred in the last two decades, more changes are deemed to occur in the next two decades. More is expected to changes, and more benefits are going to be enjoyed and challenges faced as well. This paper seeks to provide a discussion on the challenges that SCM professionals will face in 2036 (the next two decades).
One of the major challenges that SCM professionals are likely to face in 2036 is the challenge posed by the constantly diverging supply chain options. The many and divergent options create a difficult time for supply chain professionals when deciding on the best option. Looking at the past, divergence in the supply chain is investable because the business world grows day by day at a considerably high rate of growth and high rate of dynamism. Growth and dynamism come along with growth and changes in risk factors, costs, logistic decisions and sustainability all of which complicate the supply chain decision-making process.
In addition to the above challenge is the big data analysis challenge. Most of the supply chain professionals view big data as a solution to major supply chain problems. Big data is not a problem itself neither is managing it a problem. The challenge is that with the growing increase in big data and its use in supply chain management, supply chain professionals are likely to over-rely on it ignoring the misinformation associated with it. Big data has a lot of lies coined with it (Lamber, 43). Therefore, if supply chain professionals substitute authentic organizational research for big data as it is the case currently, by 2036 they are likely to face challenges. Wrong supply chain decisions will be made due to over-reliance on poor quality information.
Further, other technology oriented challenges that supply chain professionals will face in 2036 include those relating to the use of supply chain applications. Currently, several applications promise to make supply chain operations more efficient and effective at a lower cost. Such applications continue to arise and by 2036, they are likely to be a lot of them. Such applications are helpful to SCM professionals but if not cautious; the professionals are likely to deduce wrong information from the applications. It is important for the SCM professionals to note that as much as such applications are accurate, the also pose some risks to the decisions made (Hugos, 75). They there need to be rigorously tested every time before their use and updated. Currently, most supply chain professionals appear to replace important enterprise SCM systems with applications.
An inevitable challenge is the complexity of the SCM decision-making process. More people intend to consume, and more funds are allocated for consumption while more business enterprises arise in a bid to satisfy the rising consumption needs. Technological advancements are made towards satisfaction of the same needs as consumers yearn for their consumption needs to get satisfied as soon as they can. While this happens, the supply chain continues to get complicated with new elements, components and considerations every single day. As much as the new elements and components come to help, they come along with their challenges and complications. At the end of the day, supply chain management professionals will have to consider many factors before they make a sustainable decision. The supply chain decision-making process, therefore, gets complicated day by day.
One of the major objectives of the supply chains of most organizations is to go global. Most organizations seek to globalize their supply chain operations. The intentions behind such objectives are normally positive, but the consequences of going global may be negative. By 2036, most of the organizations that intend to go global will have achieved their globalization objectives (Liang et al., 54). Globalization comes along with various challenges with one of them being responsibility and traceability. Globalization poses a transparency, responsibility and traceability challenge to supply chain professionals.
Works Cited
Hugos, Michael H. Essential(s) of Supply Chain Management (SCM). Hoboken, N.J: Wiley, 2011. Internet resource.
Lambert, Douglas M. Supply Chain Management: Processes, Partnerships, Performance. Sarasota, Fla: Supply Chain Management Institute, 2008. Print.
Liang, Zhe, W A. Chaovalitwongse, and Leyuan Shi. Supply Chain Management and Logistics: Innovative Strategies and Practical Solutions. , 2016. Print.
