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Supply Chain Management Goal and Challenges

   E.S.G Logistics understands that the ultimate goal of supply chain management is to complete synch -ronize; every supply chain cycle with the customer; final demands. In reality, however, the goal is difficult to meet. Most customers face to business environment challenges,globalization;of the world economy and the emergence of the "customer economy".

  Globalization of the world economy has resulted in extending supply chains,as customers seek compara -tive advantage and access to new markets. The emergence of the Customer Economy has change the way businesses respond to demand. Product life cycles are shrinking, R&D timelines are shortening and the de -mand for a greater variety of product choices is growing.

  E.S.G Logistics recognizes that the efficient management of the flow of goods, services and information a -long a supply chain-form the procurement of raw materials, through suppliers, manufacturers, and distribut -ors, To consumers and end-users-is becoming increasingly critical.

  Our focus on order-fulfillment and demand satisfaction allows us to deliver value through service excellen -ce.

SCM Goal:"Synchronization"

SCM Challenge:"Globalization"

1. Further distances and longer lead times to manage
2. More complicated transportation routes and distribution patterns
3. Increasingly larger number of participants in supply chain
4. More difficult to respond to consumer demand in a timely fashion
5. Greater chance for weather or natural disasters to impact plans
6. Communication and coordination problems increase
7. Increasingly more demanding customers
8. Increase in variety of products demanded-from mass production of small items, to mall production runs of many items
9. More important to produce what customers want,when they want, as much as they want, and in the proper locations
10. Effective coordination among supply chain partners is increasingly important

SCM Challenge: Emergence of the Customer Economy

1. Increasingly more demanding Customers
2. Decreasing product life cycles and time for Research and Development
3. Increase in variety of products demanded - from mass production of small items, to small production runs of many items
4. More important to produce what customers want, when they want, as much as they want, and in the proper locations
5. Effective coordination among supply chain partners is increasingly important

Customer Economy presents SCM challenges

1. Customers increasingly want to work with a single provider who can manage the flow of product and information throughout their entire demand/supply chain
2. Difficulty in forecasting Customer demand
3. Coordination is required throughout supply chain
4. Communication among multiple partners with varying technologies
5. Local optimization at different stages within the supply chain
6. Reacting to changes and problems in an extended supply chain
7. Information distortion and variability within supply chain
8. Effective communication and cooperation among supply chain partners