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About the Author
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.
More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available on www.globalscgroup.com
Introduction
As the technology continues to advance and the global market becomes increasingly complex, a new paradigm is emerging: we don’t need to own everything in order to succeed. Instead, the focus is shifting towards creating strong contracts and relationships with networks of internal and external teams/ companies, leveraging their strengths to create innovative new products and solutions. This model, known as Supply Chain Management (SCM) 3.0, emphasizes collaboration and flexibility, recognizing that success in today’s business world requires a willingness to embrace changes and adapt to new realities. In this blog, we’ll explore the benefits of SCM 3.0 and how it can help organizations thrive in the ever-changing landscape of modern business
Own or Control
In the past business model, ownership has been a key driver of success. However, as technology continues to transform the global market, a new paradigm is emerging: we don’t need to own everything to achieve success. Instead we should focus on building strong contracts and relationships with a network of internal and external teams , which can enable us to create innovative new products and solutions. This approach, known as Supply Chain Management (SCM) 3.0, is changing the way we think about business and highlighting the importance of collaboration and flexibility.
One of the key aspects of SCM 3.0 is its emphasis on vertical integration and flexibility. In the past, organizations focused on owning and controlling every aspect of their supply chain, from raw materials to finished products. However, this approach can be costly and inflexible, making it difficult to respond quickly to changing market conditions. SCM 3.0, on the other hand, emphasizes collaboration across the entire supply chain, enabling organizations to tap into the expertise and resources of their partners to create innovative new products and solutions. This approach allows organizations to remain agile and responsive, adapting quickly to changing market conditions and customer needs.
Another key aspect of SCM 3.0 is its emphasis on transparency. In today’s business environment, customers are increasingly demanding transparency and accountability from the companies they do business with. SCM 3.0 recognizes the importance of transparency in building trust and loyalty with customers. By working closely with suppliers and other partners, this new generation of SCM ensure transparency throughout the supply chain. Organizations can provide customers with the information they need to make informed purchasing decisions. This approach also enables organizations to identify potential risks and opportunities in their supply chain, allowing them to proactively manage these issues before they become major problems.
SCM 3.0 also places a strong emphasis on customer centricity. In the past, supply chains were often driven by the needs of the organization, rather than the needs of the customer.
However, SCM 3.0 recognizes that customer centricity is essential for success in today’s business environment. By working closely with customers to understand their needs and preferences, organizations can create products and services that meet those needs in a timely and cost-effective manner. This approach also enables organizations to build strong relationships with their customers, fostering loyalty and repeat business.
Flipkart- Indian Ecommerce giant
Flipkart, one of the largest e-commerce companies in India has implemented a number of initiatives to increase collaboration, transparency, and customer centricity across its supply chain.
One key initiative is Flipkart’s “Seller Hub” platform, which enables small and medium-sized businesses to sell their products on Flipkart’s marketplace. Through this platform, Flipkart provides sellers with access to a range of tools and resources, including analytics to inventory management, which helps the seller optimize their operations and improve their sales. Flipkart also works closely with its sellers to ensure transparency and timely delivery of products to customers, which has helped to build strong relationships with its customer base.
In addition, Flipkart has implemented a number of sustainability initiatives across its supply chain, such as reducing packaging waste and increasing the use of renewable energy sources. These initiatives not only help to reduce Flipkart’s environmental impact but also help to build trust and loyalty with its customers, who are increasingly demanding sustainability from the companies they do business with.
Conclusion
SCM 3.0 represents a fundamental shift in the way we think about supply chain management. Instead of focusing on vertical integration and centralized control, SCM 3.0 emphasizes collaboration, flexibility, transparency, and customer centricity, enabling organizations to create more agile, responsive, and innovations in supply chains. Companies that embrace the principles of SCM 3.0 are able to build strong relationships with a network of internal and external teams, tap into a range of skills and capabilities, and create customer-centric products and services that are both innovative and cost-effective. With the increasing demand for sustainability and transparency from customers, organizations that adopt SCM 3.0 are better positioned to meet these expectations and remain competitive in the global marketplace.
Introducing.....
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.
what did Our Reader say?
GARRY BADDOCK
Chief Operating Officer Graphite Energy
I have experience with many of the well-known top-tier strategy firms but chose Global Supply Chain to support me on my supply chain projects. They always meet and exceed my expectations due to the quality of the work, the ability to work collaboratively with internal teams, and the flexibility to adjust the project approach when required.
PHILLIPPE ETTIENNE
CEO - Large Global transnational corporation From: FOREWORD - OUTSOURCING 3.0
When I engaged Vivek’s services for supply chain transformation in one of the companies I was heading, we expected the careful and methodical approach that he was famous for... I was pleased to note that the original target set for 3 years was surpassed by almost 70% in just 18 months.
TONY FEDOROWICZ
Vice-President Supply Chain Asia Pacific
I have used their services for several business transformations and workshops in many companies. Each time an outstanding workshop and project result was delivered ensuring the success of the business transformation project. Savings surpassed $25 Million per annum in one case. Very powerful ideas, were implemented very diligently.
Jean-Briac Le Dean
Co-Founder & Agen
Vivek is a very collaborative and open leader who leads teams by example. Whether internal teams, or clients teams, all are impressed by his intensity, energy level and drive to make things a little better.
Lorna Calder Johnson
Omni-Channel Product Marketing
P & L Executive
Vivek's transformation expertise is apparent from his results and dedication to operations and supply chains. His strategic expertise, knowledge and network make him a standout even among an excellent team.
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