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 of the final consumer (Liang, 5). Like many other areas of management, the practice has undergone radical changes over the past two decades. Further, supply chain options have complicated 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 changes are expected to occur in the SCM industry, which will have a greater significance to the industry. This paper seeks to provide a discussion on the challenges that SCM professionals will face in 2036 (the next two decades) as well as the comparison of different findings on the supply chain.
Steven and Johnson findings are similar to the Reck, Landeros and Lyth findings as they indicate that at the initial stages of supply in business, the supply is minimal but complicated in terms of satisfying market demand. As the business grows, the supply is tactically analyzed and made simpler despite the wide range of supply. They also compare as they both clarify that reduction in supply complications is as a result of integrated management as well as general management. They both agree to the concept of evolution in the field of supply with the integrity needed rather than forcefully acting on the recommendations.
The findings of different scholars agree as all try to simplify the mode of supply within the businesses showing greater roles of the management. They all indicate the importance of integrating the supply procedures to ensure multinational supply chain. They all emphasize on the importance of ensuring a flexible chain of supply to accommodate any future changes in the supply chain. On the contrary, Reck, Landeros and Lyth developed six stages of simplifying the supply chain while Stevens and Johnson developed four stages of supply chain simplification. Startler considered the importance of supply chain by looking at the competitiveness basis, while Speckman and Davis considered the supply chain evaluation through the measure of characteristic systems of a business.
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. Unlike the traditional supply chain, the trend towards the future shows that the supply chain is constantly diverging. 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 inevitable, because the business world grows day by day at a considerably high rate with 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.
Most of the supply chain professionals view big data as a solution to major supply chain problems. Big data is not a problem itself and 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 the data ignoring the misinformation associated with the data. Big data have a lot of lies coined with it (Lamber, 43). Traditionally, the supply chain professional relied on other forms of information and not the big data. Traditionally, such applications were seldom used as most of the things were done manually. 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.
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 rise and by 2036, there are likely to be many applications developed. Such applications are helpful to SCM professionals, but if not cautiously monitored, 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, they also pose some risks to the decisions made (Hugos, 75). The applications need to be rigorously tested before their use and proper updates made on the application. Currently, most supply chain professionals appear to replace important enterprise SCM systems with applications systems.
An inevitable challenge is the complexity of the SCM decision-making process. As the people’s income increases, and with the increase in population, demand for the consumer goods increases calling for the higher supply. Traditionally, the decision making process was simplified by less complex supply chain operations. The need to satisfy the demand creates room for the increase in business enterprises creating complexity in SCM. Technological advancements are dedicated 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.
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.
