Posted by Deepak Mandot, Senior Industry Principal, Infosys
Over the past few years, supply chain management (SCM) has evolved from a labor-intensive local process to a 'low-touch' - in some cases 'no-touch' - complex global network. Today, SCM involves end-to-end and integrated planning and execution processes with real-time collaboration across the value chain. Such a system possesses tremendous flexibility in adjusting to a dynamic and consumer-driven marketplace. For some organizations, SCM advances have been gradual while for others, they have been transformational. Let us take a look at the journey of SCM to better understand how technology has influenced its evolution.
Until the 1990s, SCM involved replacing manual processes with automated systems and leveraging advances in engineering. The increased adoption of enterprise resource planning (ERP) systems during this period significantly improved SCM integration across various organizational functions and for different stakeholders in the entire value chain. ERP systems addressed several challenges within the extended supply chain including demand volatility, changing supply dynamics, shrinking margins, shortening product lifecycles, high product complexity, and lack of inventory visibility across supply chain nodes. Thus, the adoption of ERP fostered progress across the supply chain in areas such as planning, procurement, manufacturing, warehousing, distribution, and logistics.
Over the past few years, supply chain management (SCM) has evolved from a labor-intensive local process to a 'low-touch' - in some cases 'no-touch' - complex global network. Today, SCM involves end-to-end and integrated planning and execution processes with real-time collaboration across the value chain. Such a system possesses tremendous flexibility in adjusting to a dynamic and consumer-driven marketplace. For some organizations, SCM advances have been gradual while for others, they have been transformational. Let us take a look at the journey of SCM to better understand how technology has influenced its evolution.
Until the 1990s, SCM involved replacing manual processes with automated systems and leveraging advances in engineering. The increased adoption of enterprise resource planning (ERP) systems during this period significantly improved SCM integration across various organizational functions and for different stakeholders in the entire value chain. ERP systems addressed several challenges within the extended supply chain including demand volatility, changing supply dynamics, shrinking margins, shortening product lifecycles, high product complexity, and lack of inventory visibility across supply chain nodes. Thus, the adoption of ERP fostered progress across the supply chain in areas such as planning, procurement, manufacturing, warehousing, distribution, and logistics.