Globalisation has led to an increasing complexity of the traditional supply chain model, here is a breakdown of some of the challenges.
Lack of Visability
Traditional technology limits the visibility of end-to-end supply chains at order, product and shipment points. The data provided by this technology leads to inaccurate plans, higher fulfilment costs and a difficulty in predicting when and how problems are likely to occur.
Poor Response Times
Information and data can often be passed between parties quite slowly, and focuses on a linear model. This results in slow information exchange and a lengthening of response times.
Supply chain functions often operate individually with their own set of priorities. Although these align at the top level, lack of cohesion can lead to conflict.
Inefficient Fulfilment Model
The consumer experience is really driving supply chain models forward, consumers are demanding multiple channel access and the ability to purchase, take delivery and pick up anywhere and anytime. The traditional fulfilment model is too inefficient to handle this.
In addition to fulfilment models, technology around other supply chain functions is also falling behind an increasingly digital and technologically focused consumer experience.
Lack of Advanced Cross-Functional Skills
Many of the operational skills in supply chain today seem to be function specific and lack of cross-functional skills impacts financial and operational decisions. It also means the opportunity to use data effectively cross-function is often lost.