by Vivek Sood

June 9, 2016

CFOs are not the only ones who underestimate the impact of Supply Chains on modern corporations. CMOs, COOS and even CEOs are not fully aware of the full potential of supply chain management. When the potential is not fully known, expectations are too low and results are even lower. This speech and will show you the impact of Supply Chain Management in Modern Corporations. Here is the video of a keynote speech on Impact of Supply Chain Management in Modern Corporations. To know more about Vivek Sood, make sure to visit the website viveksood.com or Global Supply Chain Group. For any questions or comments, feel free to contact us at contact@globalscgroup.com. You can find comments on Why Executives Underestimate the Impact of Supply Chains? article on LinkedIn.


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Vivek Sood

MORE INTERESTING READING
    • With the advent of globalization, managing supply chain activities has become more complex. Today a company operating in the United States may have its manufacturing facilities in China, Mexico or Taiwan and its customers throughout the world. Many companies in order to manage its global operations may outsource their supply chain activities to third-party organizations around the globe. Outsourcing reduces the supply chain operating cost but when not managed effectively proves otherwise.

      Globalization has dramatically changed how manufacturers operate, offering an opportunity to reach new customers in new markets while at the same time exposing firms to greater competition. Meanwhile, raw materials and supplier relationships must now be managed on a global scale. Just as there are benefits and costs of globalization, there are similar pros and cons of a global supply chain. In particular, companies need to manage the related risks.

  • The biggest and most significant way globalization impacts supply chain management is with the advent of outsourcing. Companies now outsource not just manufacturing jobs but entire processes. That means local auditing, quality control, logistics, warehousing, procurement— basically any function that requires low-to-medium skill labor that can be bought for less than on the company’s home turf.

    It’s true that the “textbook definition” of globalization refers to businesses operating on an international scale, but the most common (and vilified) connotation involves the exodus of jobs to cheaper, legally pliable countries. That’s significant because public perception does matter in supply chain management, especially as it increasingly adopts the tactics and obligations of traditional marketing.

  • Business today operates in a global environment. This environment forces companies, regardless of location or primary market base, to consider the rest of the world in their competitive strategy analysis. Firms cannot isolate themselves from or ignore external factors such as economic trends, competitive situations or technology innovation in other countries, if some of their competitors are competing or are located in those countries. Companies are going truly global with Supply-chain Management (SCM). A company can develop a product in the United States, manufacture in India and sell in Europe. Companies have changed the ways in which they manage their operations and logistics activities. Changes in trade, the spread and modernization of transport infrastructures and the intensification of competition have elevated the importance of flow management to new levels.

    You may be interested on supply chain case studies. Please visit our website (Hesol Consulting) and go through the case studies under supply chain.

    • Most of the devices that we use in our day to day lives are made in China with components coming from various tiers of suppliers scattered all over the earth. These components are shipped to a factory where the device is assembled, which is then handed over to a carrier, placed on a ship which sails to far flung markets such as the United States. At the port it is unloaded, trucked or railed across the country to possibly a central distribution center, regional distribution center and finally the store shelf (in case of a brick and mortar setup) or website (in case of recommence) – this is an example of globalized supply chain.

    • Wolfgang Lehmacher, CEO, director, advisor and author in supply chain, logistics and transport says:

      Globalization and Supply Chain Management (SCM) are interconnected. On the one hand SCM enables globalization. On the other hand globalization provides access to new customers and new sources of procurement.

  • The supply chain management system thrives on the coordinated effort of the suppliers, the manufacturers, the transporters and the distributors to make the product available to the end user. In this entire setup, the ultimate objective is to give a finished product to
    the customer on his demand. So in order to achieve this goal, each party involved in this process must understand the importance of its role and thereby adhere to it diligently.

    • Yes, Abhinav But With the advent of globalization, managing supply chain activities has become more complex. Today a company operating in the United States may have its manufacturing facilities in China, Mexico or Taiwan and its customers throughout the world. Many companies in order to manage its global operations may outsource their supply chain activities to third-party organizations around the globe. Outsourcing reduces the supply chain operating cost but when not managed effectively proves otherwise.

  • The impact of supply chain management practices on competitive advantage and organizational performance

    Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations but among supply chains. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) and tests the relationships between SCM practices, competitive advantage, and organizational performance. Data for the study were collected from 196 organizations and the relationships proposed in the framework were tested using structural equation modeling.

    The results indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. Also, competitive advantage can have a direct, positive impact on organizational performance.

  • Earlier Supply Chain was used to handled by commercial staff because focus was mainly on to procure material, QA department had to look towards quality aspects.

    As well as advancement increased, focus has been changed from commercial staff to Technical staff who could take care for Quantity as well as Quality alongwith other commercial aspects like Cost Optimisation, Inventory Management, Supplier Development, Logistics and sometimes Planning itself.

    Globalization provided that change so that a single person (instead a team of 2 or 3) could manage SCM, it is very useful to reduce bottomline of the company.

    • Globalization in supply chain has enormously improved the supply chain visibility. This capability helps to significantly minimize risk of loss, order delays and reduced quality.

      Globalization has also allowed most of the companies to access to information which the help of which it becomes much easier to identify, quantify, prioritize and mitigate risk for better decision making.

    • Remeber a time where importing a product was a big pain and exporting them was other pain as packing rigidness was a question.
      The Globalisation has made the world near and offcourse expand the business to multinational level.
      Thakn to SCM which has given an opportunity to trade anywhere from the world and open doors to Purcahse and Quality teams to look over to the suppliers or needfuls all around and not restricting the location.
      Impact to the SCM by globalisation is to a great extent as now you undertand the norms and requirements more better. Just from the traditioanl Corogated boxes to reusable bins or to the 3PL or 4PL.

      Hope it answers you shortly. Feel free to eleborate your query

      • Made SC more imp for companies. Shift is to total cost of ownership rather than cost of product.

        Logistics is a major cost today ..so balance between efficiency and responsive to customers demand is imp this is SC

  • The impact of supply chain management practices on competitive advantage and organizational performance

    Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations but among supply chains. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) and tests the relationships between SCM practices, competitive advantage, and organizational performance. Data for the study were collected from 196 organizations and the relationships proposed in the framework were tested using structural equation modeling. The results indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. Also, competitive advantage can have a direct, positive impact on organizational performance…[https://bit.ly/2ImViZ7]

    Anyway, you have written such a beneficial information which is very hard to find/read in today’s generation thanks for sharing such a wonderful blog.

  • Remarkable Video about speech note to show Impact of Supply Chain Management in Modern Corporations. I’ll consider these impacts in my next assessment monthly report.

  • Hey Vivek
    Nice to read your blogs on Supply Chains I just want to tell you we have been connected on LinkedIn so far and I can see you daily update the feed about supply chain in your profile and videos too.

    I have watched all of your videos on youtube and linked-in too they very nicely describe each and every concept about supply chain like you used to say the idea of explaining very fabulous that will surely help all the supply chain managers

    Great article, but the purpose was not listed to help for more research work.
    The post is good, but I was expecting more illustration on this topic.

  • SCM is the active management of supply chain activities in modern corporation’s to maximize customer value and achieve a sustainable competitive advantage. Essentially, the world can be viewed as one large supply chain. Consumers and producers are constantly communicating with each other, and a product goes through many hands before reaching its destination. Supply chain management deals with major issues such as the growth of multinational corporations, partnerships, global brand expansion, and outsourcing.

  • Supply change management is a highly-detailed system used by small and large, mostly by modern corporation to get products to consumers, from obtaining raw materials, manufacturing and delivering the final product to the customer. A well-organized supply chain management system involves optimizing operations functionality to be fast and efficient. The supply chain management problems arise when executives ignore and underestimate the importance of supply chain in their respective corporations.

  • Supply chain management in not only a process served to generate a cost reduction in the budget or a mission to create greater operational efficiencies within an organization. In recent times, the dawn of the digital age has brought wholesale transformation to the world of commerce. Only twenty years ago, these processes were arduous, labor intensive, time consuming and disorganized. It now may seem like ancient history, delivery times have gone from two weeks to a month down to a turnaround of hours in some cases. Automated systems and high-speed communication have paved the way for supply chain management and its increased demand.

  • A very interesting and important topic you have touched. In this modern era, more than ever before, supply chain management has become an integral part of business and is essential to any company’s success and customer satisfaction. Supply chain management has the power to boost customer service, reduce operating costs and improve the financial standing of a company, but how does this work?

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