Now that when you have learned the concept of Convergence, let me provide with one more interesting concept which will help you in understanding the next recent trend in the supply chain.
Now we are going to talk about four types of uncertainties which have been haunting various industries for centuries. And in case you can find a break through solution to solve few of the untamed one –bingo, you have earned a billion $$$ my friend.
The four types of uncertainties are as follows:
Process uncertainty, control uncertainty, demand uncertainty and supply uncertainty.
Of course I can provide you with the definitions of all of them, but I am shrewd person who have a personal agenda of not allowing you to become a billionaire. Therefore I will want you to search about them on your own, and maybe, just maybe you may stumble upon some more good pointers which may further help you.
Now let’s get back to topic.
Organizations have found it easier to tackle process and control uncertainty with a relative short term planning, emphasizing more on cost control and adherence to the laid processes. In order to control the supply uncertainty all work processes have been integrated, EDI has been deployed vastly.
The most difficult task across industries is to take care of demand uncertainty. Excess inventory of finished goods causes overall supply chain costs to go high, on the other hand lack of inventory may create stock outs which has much greater costs. Organizations have now focused in integrating all the members across the supply chain, synchronizing the material flow across the supply chain and finally engaging into a new concept of CPFR (Collaborative Planning Forecasting and Replenishment).
Thus we see that recent trends suggest a movement towards risk adjustment and Integration of supply chain across all members.
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