Supply chain management is not as easy as it
seems. There are several issues confronting with supply chain management
strategies. An integrated supply chain method is presented here to improve
efficiency through direct collaboration between all trading partners. The
discussion will emphasize on the Collaborative Planning, Forecasting and
Replenishment (CPFR), a co-managed planning processes, and shared information
with an ultimate focus on the consumer (Ha & Tang, 2016).
In supply
chain management efficiency is must be required for innovative products. We can
bring improvement in the efficiency through direct collaboration between
traders or by reducing the extra and irrelevant intermediaries in the supply chain.
The fewer intermediaries will reduce obstacles in collaboration of trading
partners. Integration and strong connection between selected traders will
support the company to cover the targeted segment easily and in a
cost-effective way.
CPFR
(Collaborative Planning, Forecasting, and Replenishment) is basically known as
the comprehensive process in the supply chain management in which company not
only pay attention to the planning and forecasting collaboration and
integration but also an emphasis on the use of key data points given by the
selected suppliers and targeted customers. Basically, the key stakeholders in
this process, our customers, suppliers, and overall company. When the company
integrates all these stakeholders concerns and requirements, then the company
can formulate a single but integrated strategy that covers stake and interest
of all these trading partners. In fact, while formulating strategy, an
organization need to consider the interest of suppliers also. Long term
relationship building strategy of Japanese companies is the evidence of this
concept (Johnsen, Howard, & Miemczyk, 2014).
Somehow,
in integrated supply chain main focus should not deviate from the selected
segment of customers. Customers should be given key attention and concentration;
otherwise, the company cannot get success in the competitive market. Customer oriented
companies and customer-focused strategies always result in the benefit of
organizations. For an integrated supply chain method to bring improvement in
the efficiency, organizations need to have co-managed planning processes and
shared information. Suppliers directly interact with the customers (Gunasekaran, et al., 2016). Their interaction
with customers and consumers is definitely more than the interaction between a
company and its customers. Therefore considering these factor, organizations
should give importance to the co-managed planning processes. It needs to
include all partners in the supply chain including third-party companies (from
which company may purchase materials and other services to ensure
organizational operations), suppliers, information system providers (business
analytics and consulting agencies), and carriers. The organization can give and
take information with trading partners or suppliers; thus benefit will
ultimately support the efficient supply chain (Gunasekaran, et al., 2016).
In the garment
or textile industry, supply chain integration can be of different types such as
supply chain forward integration, supply chain virtual integration and supply backward
chain integration. Organizations have to select one of the most suitable supply
chain integration type that relates to its corporate mission, organizational
operations, and overall market requirements. While establishing a strategy for
supply chain management, we have to take into consideration internal
capabilities and factors as well as external market requirements and trends. Only
focusing on the customers and competitors is not enough to bring efficiency,
particularly in the uncertain environment. Uncertainty of the external
environment is itself a threat for organizations. In the presence of
uncertainty and unpredictable market, demand organizations can only get an idea
about the market and customer demand through paying attention to the
integration of trading partners and company. Suppliers and other third parties
involved in the trading process can support in collecting information about the
uncertain market and thus an organization can establish an integrated and
efficient supply chain management strategy (Ha & Tang, 2016).
References of Supply Chain
Management Issues
Chan, A. T., Ngai, E. W., & Moon, K. K. (2016).
The Effects of Strategic and Manufacturing Flexibilities and Supply Chain
Agility on Firm. European Journal of Operational Research, 1-35. doi::
10.1016/j.ejor.2016.11.006
Chavez, R., Yu, W., Feng, M., & Wiengarten, F.
(2014). The Effect of Customer-Centric Green Supply Chain Management on
Operational Performance and Customer Satisfaction. 25(3), 205–220.
Gunasekaran, A., Papadopoulos, T., Dubey, R., Wamba,
S. F., Childe, S. J., & Akter, S. (2016). Big Data and Predictive
Analytics for Supply Chain and Organizational Performance. Journal of
Business Research, 70, 308-317.
Ha, A. Y., & Tang, C. S. (Eds.). (2016). Handbook
of Information Exchange in Supply Chain Management. Springer.
Johnsen, T. E., Howard, M., & Miemczyk, J.
(2014). Purchasing and Supply Chain Management: A Sustainability
Perspective (illustrated ed.). Routledge.
Paulraj, A., Chen, I. J., & Blome, C. (2017).
Motives and Performance Outcomes of Sustainable Supply Chain Management
Practices: A Multi-theoretical Perspective. 145(2), 239–258.
Ross, D. F. (2016). Introduction to Supply Chain
Management Technologies (2 ed.). CRC Press.