For "complexity masters," the world can be a dependable supplier and profitable market. But lackluster business performance is an unpleasant side effect for companies ill prepared for globalization and mounting value-chain complexity.
The first generation of SCEM vendors did not offer enough value to earn a permanent place in the marketplace, but a new wave of vendors with expanded capabilities promises to do a lot better.
Supply-chain plans tend to collapse when demand spikes, supplier failures and other problems at the execution level radically change the underlying assumptions. But better planning techniques, event management tools and a new generation of web-based collaborative solutions can keep these plans on track.
The breadth and depth of web-based applications for managing procurement and sourcing is expanding to the point that it touches on just about every important business process a company performs.
Today's supply-chain marketplace has little room for generalists. It's specialists that are in demand, with buyers of both software and services looking for industry-specific solutions and deep domain expertise.
Consultants and 3PLs differ on whether the trademarked term is a distinction without a difference, but they agree that there is a real need for a "supermanager" to run a company's logistics, knowledge base and IT systems.
Working closely with consultant Kurt Salmon Associates, the appliance manufacturer decided that mixing its proprietary inventory management system with a new distribution center in Memphis was a recipe for success.