SUPPLY CHAIN MANAGEMENT 239NOTESNMIMS Global Access - School for Continuing Education price to the customer. Thus the major challenge is to overcome these factors and rectify any problem arising at any of these stages and ensure smooth supply chain in the organisation.Planning and Risk Management:Business world keeps changing everyday. There are new product launches, global sourcing, new acquisitions, changing credit availability, the need to protect intel-lectual property, etc., that supply chains must be planned accord-ingly and evaluated regularly to incorporate these changes and, if required, redesigned. Supply chain risk must be identified and quantified. Cost Control:Another challenge that supply chain faces is from the ever increasing operating costs of businesses. There is a con-stant rise in freight prices, upgrades in technology, rise in labour rates, increase in healthcare costs, and rise in commodity prices and so on. These challenges are to be overcome by supply chain managers by taking correct decisions if the objectives of the organ-isation are not achieved. Supplier Relationship Management:Different departments in an organisation sometimes follow different methods of implementing and measuring a performance and its results. Suppliers on the oth-er hand might follow some other method to assess a performance. This can lead to a problem if the results do not match. A few SCM provide a common language for supply chain classification and analysis that makes the assessment easy for participants and on common grounds and parameters to communicate, benchmark ef-forts, and enhances the evaluation of best practices.Talent:Supply chain managers must have a thorough understand-ing of the key skills needed for supply chain management roles. To keep abreast with latest trends and updates in the supply chain requires job qualifications, methods for developing future talent and leaders, and the ability to efficiently source specific skill sets.9. An organisation that implements supply chain management is able to considerably reduce the wastage and in turn increase the efficiency of its operations as only value adding activities are encouraged and included. (True/False)SELF ASSESSMENT QUESTIONS Utilising Internet search for a case study of a business enterprise and study the benefits of incorporating SCM. Against the benefits also study the challenges faced by the enterprise due to SCM. Pres-ent your findings in a short note.ACTIVITY
240 INFORMATION SYSTEM FOR MANAGERSNOTESNMIMS Global Access - School for Continuing Education 8.6EMERGING IT TRENDS IN SCMIt is an established fact that technology, especially IT, continues to drive changes in the SCM. IT has enabled organisations in getting more pro-ductivity by introducing new technologies and concepts time and again. The major use of SCM is in digitising key financial and business process-es that enables collaboration across the organisation. IT, if used wisely, helps create a community of partners that execute coordinated process-es in an organised and informed manner leading to overall success for the organisation and its suppliers and customers.