The Importance of Supply Chain Management and Key Trends Influencing It

The Importance of Supply Chain Management and Key Trends Influencing It

Companies with reliable resources centered around demand planning and forecasting produce better outcomes and boost their company value.

Fremont, CA: As companies use their supply chain to compete and gain market share, spending and activity in this space is increasing. Technology and process upgrades at progressive companies show that supply chain superiority is a crucial factor in the entire business strategy, and increasing value to customers is everyone's business.

Here are three trends impacting supply chain management:

Globalization

The right supply chain is essential for handling the changes introduced by rapid globalization. A well-planned supply chain network design can improve the supply chain network and the stream of materials through the network. This helps obtain the supply chain's cost with a total landed cost perspective and uses advanced mathematical technology to find the ideal answer to strategic and tactical questions.

Shortened and More Complex Product Life Cycles

A significant benefit of product lifecycle management (PLM) processes and technology is assisting companies design products that can have joint operations, components, or materials with other products. This minimizes the risk of obsolescence write-offs, increases cost leverage on buying vital materials, and making sure that infrastructure investments are perfectly utilized.

Also, getting this correct will help optimize the time to market. By concentrating PLM efforts in these fields can help a company buffer itself against the risk of the sudden cost increase, a poor product launch, unplanned obsolescence write-off and can improve the customer opinion of the company as an influential innovator.

Demand Planning Begins at the End of the Cycle

Demand planning is integral to the more extensive sales and operations planning (S&OP) process and can have a positive impact on new product introductions, inventory planning and management, customer service, efficient supply planning, and sourcing strategies. The success of demand planning is usually connected to organizational structure. Companies with reliable resources centered around demand planning and forecasting produce better outcomes and boost their company value. Companies need to be dedicated to this from a resource and technology perspective with the strategic importance of demand planning.

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