e-SCM
Is REAL e-SCM a fantasy for Indonesia?
Not in the next few years…
Nowadays Supply Chain Management (SCM) is one of the most talked-about topics in the media or at seminars. Once considered an antiquated concept, this fundamental aspect of modern management has become a hot topic thanks to the Internet.
The Internet has revitalised the concept through changing the way we think about managing supply. From the costly and inefficient physicality of traditional Supply Chain Management (SCM), with the help of Internet, the process can now be done virtually. Through the web, data can be transferred accurately from any location in the world within seconds and at the lowest cost.
Peter J. Metz in his book "Demystifying Supply Chain Management" shows that the new methods of SCM reduce inventory by 50%, total supply chain costs as a share of revenue by 20%, cumulative cycle time by 27%, while revenues can rise by 17%.
Here in Indonesia, however, rather than success stories, one more often hears tales of woe and loss. Companies have been compelled to give up on web- based SCM, or not fully exploit the benefits, because of problems with infrastructure, transparency, culture, mastering the technology, etc.
Naturally, a lot of questions come to mind. Yes, SCM is good. But, how feasible is it to invest in SCM for your company? What is the cost of implementing SCM? How do we justify the investment? Will the benefits exceed the costs? When is the right time to implement SCM? Thankfully, questions of strategic significance do not outweigh the answers.
At Agrakom, we have trained staff to help you plan, implement and succeed in mastering the ins and outs of Supply Chain Management. Successful SCM is no longer just a fantasy.
