Digital transformation
This is a new and one of the most exciting challenges to OSCM. Using new technologies to radically alter how your organization operates and provides value to customers is what OSCM needs to approach. It’s not simply about deploying new technology. The fundamental goal of operations and supply chain digital transformation is to enhance customer experience by lowering barriers between consumers and suppliers through improved communication channels, real-time visibility into inventory levels, etc. For example, if you have a retail business, retail operations solutions can help you simplify all operation processes, especially automating inventory management and delighting your customer with an omnichannel experience.
Qualified personnel
The core of any organization is its qualified personnel, which ensures the company’s sustainability and expansion. Building a workforce with the necessary expertise and ability to continuously move the business’ needs ahead is necessary for effectively managing operations and the supply chain. This movement comprises the capacity to not just finish a task at hand but to see beyond it, innovate, and continuously get better. However, finding talented people who are enthusiastic and engaged in this field of employment has grown more difficult over time. It is a big challenge.
Quality customer service
OSCM is centered on client requirements. Giving the proper amount of a product, of the right quality, for the right price, and at the best customer service is important. However, customers have a variety of preferences, thus we must always cater to their needs. Offering distinctive solutions to clients makes a huge difference. Businesses that put forth the effort to learn about and invest in new technology are the ones that succeed in this industry.
Costing
Raw material, energy, and labor costs have all increased globally as a result of economic restrictions. This is a big challenge to OSCM. Your business needs to make some adjustments to maintain operations for production to continue and for customers to receive high-quality products at reasonable prices.
Risk management and forecasting
The risks for OSCM are always existing as a result of the market’s ongoing changes, brought on by a range of factors including consumer desires, political objectives, and global sourcing. Your business has to forecast and always be prepared with a risk management plan.
Sustainability
In a survey by EcoVadis and the HEC Paris business school in 2017, sustainability was recognized as one of the top five priorities by 97% of the procurement officers. The three pillars of sustainability are social, environmental, and economic. Operations management needs to consider how the business’s activity affects a community’s safety and welfare, the environment, and economic sustainability. When any of the three pillars’ outcomes are threatened, your business must also start and monitor corrective action. The path of operations management sustainability and supply chain management is to pursue social, economic, and environmental goals within the business operations and operational links that extend outside the firm to encompass the supplier chain and communities.
