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Unlocking Maximum Profitability: The Power of Collaborative Supply Chain Management
Global supply chain blogs
Vivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com
Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.
Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.
Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.
Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.
Collaborating in Supply Chain Management has become an increasingly important focus of strategy for any company’s operations in modern times. The concept of SCM 3.0, or the third generation of SCM, represents a major departure from the traditional linear model of SCM. In the old model, businesses related to each other in a hierarchical manner, resulting in a rigid, inflexible system that hindered innovation. In contrast, SCM 3.0 is a super-networked business model that encourages collaboration and allows for more customer-centric product design. In this blog, we will delve deeper into the concept of SCM 3.0 and explore the benefits of this approach for modern businesses. We will examine how this model can help companies achieve greater flexibility, innovation, and ultimately, success in today’s highly competitive marketplace. So, join us as we explore the exciting world of SCM 3.0 and learn how it can help your business thrive in the years ahead.
Collaboration in Supply Chain Management - SCM 3.0
SCM has become a critical factor in determining a company’s success. However, the traditional linear model of SCM is becoming increasingly outdated and inflexible, stifling innovation and making it difficult for businesses to adapt to changing market conditions. This is where the concept of SCM 3.0 comes into play, offering a more collaborative and customer-centric approach to supply chain management. The traditional linear model of SCM, in which businesses relate to each other in a hierarchical manner, has several drawbacks. This model can be inflexible, formulaic, and innovation-stifling, resulting in a rigid and inefficient supply chain that struggles to keep up with changing market conditions. In contrast, SCM 3.0 is a super-networked business model that encourages collaboration and cooperation between different organizations, allowing for more customer-centric product design and a more flexible and responsive supply chain.
At the heart of SCM 3.0 is the concept of collaboration between different organizations. R&D teams of different organizations work together, along with other departments like procurement, marketing and human resources, to produce, store, and move products before finally selling them to the customer. This approach allows for more innovation, as multiple organizations can bring their unique perspectives and expertise to the table, resulting in more innovative and customer-centric products. Companies can use data from the bottom up, in understanding customer behaviour and what the customer wants. This collaborative approach gives multi point perspective on each step of the design and manufacturing process. If implemented correctly, the companies can save on cost, resources and be flexible to market conditions.
Another benefit of SCM 3.0 is that it allows for greater agility and swiftness in the supply chain. By breaking down the traditional hierarchies and silos that exist in many supply chains, organizations can work together more efficiently and respond more quickly to changes in demand and other market conditions. This can help companies stay ahead of the competition and maintain their competitive edge in a rapidly changing marketplace.
Finally, SCM 3.0 offers significant benefits in terms of customer-centric product design. By working together with other organizations and focusing on the needs and preferences of the end customer, companies can create products that truly resonate with their target audience. This can lead to increased customer loyalty and higher levels of satisfaction, which can translate into increased sales and profits over time
NIKE bY YOU
Nike has implemented SCM 3.0 to create their ‘NIKE by you’ program, which allows customers to design their own shoes. This program is based on the idea of co-creation, where customers can work together with Nike designers to create a product that is tailored to their needs and preferences.
The ‘NIKE by You’ program is built on a super-networked business model, where different organizations work together to create a more flexible and responsive supply chain. Nike’s designers work closely with customers to understand their unique needs and preferences, while also collaborating with manufacturers and suppliers to ensure that the products can be produced efficiently and at a reasonable cost.
By embracing SCM 3.0 and co-creation, Nike has been able to create a highly customer-centric product that resonates with its target audience. Customers have the ability to design a shoe that is customized to their exact specifications, from the colour, design and materials to the fit and performance features. This level of customization has led to increased customer loyalty and higher levels of satisfaction, which has translated into increased sales and profits for Nike.
In conclusion, SCM 3.0 represents a departure from the traditional linear model of supply chain management, which was hierarchical, inflexible, formulaic, and innovation-stifling. Instead, SCM 3.0 emphasizes collaboration, co-creation, and a super-networked business model that allows for more customer-centric product design. The benefits of SCM 3.0 are clear. By embracing a more collaborative and customer-centric approach to supply chain management, companies can improve their products, increase customer loyalty and satisfaction, and drive increased sales and profits. As technology continues to evolve and businesses become more interconnected, it is likely that SCM 3.0 will become even more important in the years to come.
The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.
Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.
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