Supply chain management has endured a roller coaster ride in 2018 with several high and low points owing to disruptions in the politico-economic conditions, global natural disasters, regulatory changes and so on. These have caused volatility and uncertainty in the field. It is crucial for businesses to anticipate and be prepared for such changes. A good supply chain management certification will provide you with the necessary knowledge and skills required to do this. For now, here are the supply chain planning and optimization projections for 2020:
Increased usage of cloud and stronger security measures: There have been a large number of big data breaches in 2019 which have brought the question of security into the spotlight across industries and Software-as-a-service has been identified as the least risky solutions. Supply chain management is exposed to a greater risk of data breaches because several facilities are opened in unstable geographies, and being an interconnected system, even a small breach in one facility can have a large-scale impact. It is predicted that there will be an increased demand for and usage of cloud-based services and solutions in the supply chain activities in 2020 in order to address the security question.
Continuous Planning: Owing to the Amazon Effect or in other words, ever-growing customer expectations, it has become essential for supply chains to shift to continuous planning. This is because monthly, weekly and even daily planning is not sufficient to meet customer expectations. More businesses will understand this and will make the shift to continuous planning to address global challenges, disruptions and opportunities then and there, through the development of robust supply chain optimization and planning capabilities and building cross-functional teams that will work in control room-type environments.
Greater investment in Supply Chain Master Data Management (SCMDM): High quality and consistent data have become a pre-requisite for better supply chain planning and execution. If not, the quality of recommendations will be questionable. The data systems must be such that they can be easily and quickly maintained and updated. To this end, SCMDM has come into focus as a critical requirement and in 2020, there is expected to be more investment in it. To gain a more in-depth understanding of STMDM, sign yourself up for a supply chain management program.
Increased digitization and use of advanced analytics: 2018 saw businesses realize the importance of technological advancements and digitization in the supply chain optimization and planning, and supply chain management as such. The Internet of Things (IoT), Artificial Intelligence, smart sensors, machine learning, etc. have found their place in various stages of the supply chain starting from product design to manufacturing to shipping to delivery. 2020 will continue to see an increased use of digitization, app-building platforms and advanced analytics by firms to improve interconnectedness and interoperability across the supply chain. This, in turn, will lead to better optimization and planning, more accurate forecasting, improved clarity across activities and a higher level of customer satisfaction.
Move towards greater transparency and lean supply chain: There are high risks attached to businesses today along with increased volatility and uncertainty. This has given rise to the need for smart predictive risk management and also pushing firms to adopt a lean supply chain. 2020 will see a rise in lean supply chains. Lean supply chain requires a higher degree of transparency across operations so that information can be easily accessed, waste and inefficiencies can be identified and eliminated, silos within the process can be broken and activities can be better optimized.
Greater reliance on sophisticated demand modelling: Customer demand is volatile, and it is difficult to effectively forecast it using traditional tools. When businesses do not have the right forecasts about demand, they will not be able to engage in effective planning or agile decision making. A newer trend of using exploratory demand modelling instead of traditional forecasting has come into force. In 2020, supply chain designers and analysts are expected to rely on and leverage these demand modelling solutions for better outcomes.
Demand for talent to heat up: The improvements and technological development in supply chain management through higher investment has unleashed a wide array of career opportunities in the field. As the career scope and prospects increase in the field, there is a growing need for the right talent. The high demand for both experienced and skilled professionals has driven up the pay package for professionals in this supply chain management. Entry-level jobs in the field pay around Rs. 4,00,000 per annum while highly experienced managers receive nearly Rs.16,00,000 per annum. There is a high demand for and higher pay scale for professionals with skills such as vendor management, operations management, SAP Materials Management, etc. If you are looking at a career in supply chain management, you must consider taking a supply chain management program and improve your chances of getting employed with a lucrative pay package with a supply chain management certification.