Abhijeet, Assistant Manager SCM, India I could see following three biggest challanges faced by SCM professionals 1. Lack of Planning- Most of the OEMs need to show flexibility in their production so as to be competitive in the market and at times market also behaves strangely. So OEMs are in very uncomfortable situation to plan their productions and if productions are not planned properly, obviously the suppliers will have to shorten their lead time and produce the goods, deliver material at high cost which affects overall supply Chain. Even a single supplier misses out the whole production of OEMs come to stand still.
2.Optimum Cost Day by day pressure on reducing the material cost of the total BOM cost is increasing and none want the material cost to increase in their BOM, Every quarter, every 6 months, every year steep cost reduction targets awaites buyers. Buyers need to balance between suppliers with minimum cost,acceptable quality, & delivery. It's difficult to source such suppliers who gives you cost reduction every quarter, every year.
3. Inventory Management It's important for the buyers to maintain inventory levels. Many companies implemented systems like JIT which makes buyers life vulnerable if they don't get the material on time, the whole production comes to stand still.
What are the 3 biggest challenges faced by supply chain/purchasing professionals today? (Survey Result 20) - To learn more about this author, visit Jon Hansen's Website.
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