Thursday, 5 June 2014

The Supply Chain Dynamics & How to make it Work

Structural dynamics experiences lows and stock during the management of the flow structure of the supply chain. When looking at this dynamic from a managerial perspective there are plenty of delays and feedbacks to monitor, including:
  • Unfulfilled orders
  • Back logs
  • Delayed deliveries
  • Capacity miss-match
  • High inventory
  • Overproduction
  • Fluctuations in demand
With the volatile market and the supply structures becoming more complicated the dynamic behaviour of the supply chain is going to become increasingly exacerbated.

Technological dynamics requires a change from old systems into new technologically advanced ones. It can be difficult, costly but the gains make it all worthwhile.  The technological dynamics help competitors to update their offerings to the market, sometimes requires suppliers to be changed to remain competitive, equipment upgrades are essential to cater to new technology and training is needed to close the skill gaps.

Relationship dynamics are at the core of supply chain management. The relationship between the suppliers, the buyers and the end consumer is vital.

Surviving the Supply chain dynamics requires the Triple A Supply chain model, which stands for Agility, Adaptability and Alignment:
  • Supply chains have to be agile and able to respond quickly in relation to the changes in the market and demand
  • Adaptability deals with long term changes in the external environment. Changes in technology, market positioning, skill upgrading and competence are shifted to deal with external dynamics.
  • Alignment coordinates the interests of all members in the supply chain capability so it remains cohesive and stable.

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