The NEER Future
The Global Environment
The global nature of the current business landscape is impacting the overall business management and governance in terms of managing business delivery and also transactions at the most local level. This is bringing about a change in consumer behavior driving new trends in the industry value chain.
The governing forces of these trends can be attributed to the NEER factors: New Technology Adoption (RFIDs, social media, OTT usage etc.), Economic (emerging markets: BRICS), Ecological (natural resources and environment sustainability), and also Regulatory (new compliance - carbon footprint, growing emphasis on corporate social responsibility). All of these have put a significant pressure on the overall marketplace today in terms of more demanding and stringent expectations of customers. The demand is for faster processing schedules and shorter TAT for flow of product and services, directly making the Information flow also complex in terms of maintaining overall transparency and visibility in the industry supply chain, as well as driving the requirement for real time information for quick decision making.
The Future Challenge
The level and extent of collaboration and integration today between the stakeholders - both internal and external, of a supply chain has led to a wide diversity and mix of data types handled at any instance in the chain, making it far more complex in terms of factors of predictability (for e.g. demand) or analytics (for e.g. risks). This has led to a need for increased level of speed of interaction between the various elements of the chain. Moreover on account of dissolution of stakeholder boundaries, there is a need for a new governance model with ideal metrics in measuring the various aspects of performance of the chain.
As a result, enterprises are today looking for various avenues of differentiation to achieve sustainability in the backdrop of stiff competition. Market consolidation as an immediate fall out of this in various industry segments is picking up with new environment of business, market and requirement for people to leverage right skills and competencies for delivering value. This opens up a couple of possible opportunities for the area of supply chain (especially in fulfillment) industry aligned to the market need with inbuilt end-to-end collaborative capabilities amongst its stakeholders. The following are few potential areas:
- Collaborative Logistics - Shared storage and transportation, Cross docking, integrated Hubs, etc.
- Demand Fluctuation management - a "pull" supply chain
- Product Identification - Product Master Data handling, labelling
- Asset Efficiency - reverse logistics for asset disposal & value recovery
As the industry is set to explore new competencies for enterprises to differentiate in the backdrop of intense competition in market place, the expectation from the "supply chain" goes to the next level under the influence of NEER factors.
"Collaboration for Excellence" gradually becomes a preference in this area for enterprises to maintain sustainability by leveraging the scale of pooled competencies and at the same time continuing to deliver "value" to the end consumer. Let us be a positive contributor to this "value arbitrage".