News Makers

 By Raghu Menon

Organizations are increasingly getting functionalized and operate as a silo. In a functionalized business model each function is myopic in nature focussing attention on the local metrics leads to inefficiencies at the organization level.  Supplychain integration requires a conscious effort on the part of an organization and to make it happen, firms have to make changes in structure, process and performance measures.  Most organization has realized the need for internal integration and few have realized the need for an external integration.

Organizations have achieved this by centralizing all planning activities and create customer supplier links among the chain.  A centralized operation both on the planning and distribution point of view eliminates problems based on a performance due to the visibility of the chain.  With the help of SRM (Supply Relationship Management) it’s possible to make large complex decisions to make it happen on a real time basis by integrating directly with 3PL or 4PL operators as these functions are an extension of each organization in meeting their supply chain and logistics requirements.

Many organizations still follow a decentralized system which has its own drawback such as longer lead time, complexities in implementation of key decisions on a real time basis and duplication of process which will have direct impact on efficiencies and will obviously increase the operational cost.

There are no easy solutions and each organization will have to find the best way using a hybrid approach. The remedial strategies to improve supply chain efficiencies are

• Information sharing  across the chain
• Share cost savings generated from value analysis
• Improving operational efficiencies

The information shared above are implemented in various organizations and industries.  Hexomatrixx introduces supply chain innovations that can help organizations improving the service levels and minimizing costs.

  More info please do write to us:  supplychain@hexomatirxx.com