INTRODUCTION

From everyday traffic jams to delayed trains to long queues at the airport, disorder
continues to prevail in India and the developing world. Growing up in this environment, I
have experienced how chaos perpetrates inefficiencies and affects the quality of life.
Streamlining these widely varied systems and providing effective supply chain solutions for
one billion people is a complex problem, but one that I believe can be achieved with the
right amount of focus on supply chain research. With the whole manufacturing and
transportation industry under considerable cost pressures, focus on effective supply chain
systems has never been higher.
High inventory liability, the inability to align supply with demand in real-time, and a lack of
alternative supply sources are among the many issues that take their toll on todays supply
chains. The typical supply chain relies on the skills and resources of hundreds or perhaps
thousands of suppliers each of which occupies a link on the chain. When one link cant
see what another is doingor, when one is isolated from the rest by narrow thinking and
processesthe entire supply chain can suffer.

WHY THE INCREASED FOCUS ON SUPPLY CHAIN SYSTEMS?

Recent Global studies of supply chain executives around the world found that respondents
identified supply chain risk, more than any other, as having the greatest potential to disrupt
their top revenue driver. Supply chain researchers believe that it can take at least two years
or more for companies to recover from a supply chain failure.
The worrisome news here is not just that some corporations fail to recognize how new
business paradigms have changed their risk profile. Rather, it is that even among those that
do, too many accept it under the mistaken belief they cant do anything about it.
Still others, hamstrung by expectations narrowly influenced by past experience, fail to plan
for the unthinkablethe devastating hurricane, the shocking terrorist attack, or the collapse
of an important supplier in the wake of political upheaval or accounting fraud. Conversely,
some companies fail to appreciate the dramatic consequences that even a seemingly minor
supply chain disruption can trigger.
The good news? Companies still have tremendous opportunities to reduce their supply
chain risks, whether they manage all production in-house or outsource significant
responsibility for the assembly, production or delivery of products. Indeed, some might
argue that, in the corporate governance environment in which we operate, companies have
a responsibility to shareholders to pursue such opportunities. The question, of course, is
how? How can companies manage the many risks to which modern supply chains are
vulnerable, particularly when that supply chain might stretch from New Delhi, India to
Pennsylvania, USA? The answer lies in understanding how those risks have changed,
identifying the critical pinch points where problems could disrupt your supply chain, and
investing in research to find out feasible solutions which can forecast and successfully .

TOP CHALLENGES FOR SUPPLY CHAINS (POTENTIAL FOR NEW RESEARCH)

SUPPLY
CHAIN
VISIBILITY

GLOBALIZATION

INCREASING
CUSTOMER
DEMANDS

COST
CONTAINMENT

RISK
MANAGEMENT

MY RESEARCH WILL TRY AND ANSWER FOLLOWING QUESTIONS

1) SUPPLY CHAIN VISIBILITY:
a) How to improve visibility in supply chain systems using better instrumentation
systems?
b) How do we improve this visibility downstream?
For example, dealers might use smart tags not only to locate specific automobiles
across expansive lots but also to ensure they install the right customizations on the
right vehicles.
c) How can we improve the inter-connectivity of supply chains and in the process
address the other 4 issues that haunt supply chain systems?

2) COST CONTAINMENT:
A) Cost containment is critical. But are we looking in the right direction?
Cost-cutting intentions are obviously strong; but are the supply chains looking in the
right areas? Are they selecting targets strategically? Previous research suggests some
uncertainty here.

B) How can adoption of smarter and intelligent technologies help in cost

containment?
For example, by analyzing production and customer locations, order quantities,
transportation costs and delivery times, a manufacturer can determine the right
number of distribution centres and their ideal locations. The optimized network
reduces warehousing and transportation costs, while still maintaining high service
levels.

3) RISK MANAGEMENT:
A) Previous research suggests that supply chain risk management is not a priority for
most of researchers. But renewed research focus on risk management can help
businesses be more prepared to deal with unexpected hiccups. But how?
For companies, supply chain risks are many and varied. Increasing globalization and
new economic realities have spawned even more.
However, with sophisticated demand planning, variable cost structures and better
integration with suppliers, the smarter supply chain is more capable of flexing supply
up and down with demand.
To help identify and prepare for the unknown, the smarter automotive supply chain
equips itself with advanced business analytics. Instead of simply responding to
changes it senses, the smarter supply chain uses real-time information and
sophisticated modelling to predict outcomes and take appropriate actions ahead of
time.

4) INCREASING CUSTOMER DEMANDS

A) How does real-time collaboration help in meeting increasing customer demands?
B) How do companies involve the end customer using smarter and intelligent value
chains across systems?

5) GLOBALIZATION
A) Do operational issues impede globalization progress of supply chains?
In the early stages, we handled the cultural and operational challenges of
globalization very poorly. We still act very domestic today; its difficult to change
behaviour. Supply chain executive, US OEM
B) How can we facilitate globalization using common processes and terminology?
Instead of running each facility separately, the smarter supply chain manages
resources globally matching demand with sourcing and manufacturing capacity
around the world. Through intelligent business analytics, it tracks and synthesizes
demand and supply trends, evaluates complex what if scenarios and acts based on
the most likely outcomes.

REFERENCES
1) The new supply chain challenge FM Global
2) Abhijeet Ghadge, Samir Dani, Roy Kalawsky, (2012) "Supply chain risk management:
present and future scope", The International Journal of Logistics Management,
3) Supply chain Risks and Opportunities - IBM