[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/09\/supply-chain-definition-models-challenges\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/09\/supply-chain-definition-models-challenges\/","headline":"Modern supply chain overview: Definition, models, challenges","name":"Modern supply chain overview: Definition, models, challenges","description":"Supply chain is having an ongoing moment. Discover the trends, models, challenges, and requirements of modern supply and demand. ","datePublished":"2022-03-09","dateModified":"2022-05-23","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/sharon-goldman\/#Person","name":"Sharon Goldman","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/sharon-goldman\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/222c67dc3671689373819eb315e4f4b6?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/222c67dc3671689373819eb315e4f4b6?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Customer Engagement and Experience","logo":{"@type":"ImageObject","@id":"http:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/03\/logo-fcee-schema-app.png","url":"http:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/03\/logo-fcee-schema-app.png","width":278,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/03\/Supply-Chain-2022_1200x375.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/03\/Supply-Chain-2022_1200x375.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/09\/supply-chain-definition-models-challenges\/","about":["B2B Commerce","Commerce","Commerce","CPG","E-Commerce","Future of Grocery Retail","Future of Supply Chain","Supply Chain","Sustainability in Business","Wholesale Distribution"],"wordCount":1247,"keywords":["COVID-19 Supply Chain","CPG Trends","Digital Supply Chain","Ethical Supply Chain","Supply Chain","Wholesale and Supply Chain"],"articleBody":"What is supply chain? Supply chain is the entire system and all processes involved in delivering products or services to end-users. This network between companies and suppliers includes beginning stages like sourcing and procurement to final delivery, and involves all activities, employees, technologies, organizations, data, resources, processes, and components involved with getting goods or services to the users.And, in case you haven’t heard, supply chain is having an ongoing moment: Over the past two years, supply issues have been front-page news \u2013 from toilet paper shortages to shipping container chaos \u2013 as a result of global disruptions related to the Covid-19 pandemic, climate change, and political unrest.What was once a topic primarily discussed among those in specific types of business, supply chain has become a dinner-table conversation as people who’ve never considered the subject before wonder if basic supplies like food, medication, and building materials will be available like they were in The Before Times (Pre-COVID-19).Providing an exceptional #CX is fundamental for business success. @SameerPatel shares how SAP solutions can help manufacturers gain insight into customer demands through enhanced supply chain visibility. Watch here \u25b6\ufe0f https:\/\/t.co\/fMtlFFg5uy pic.twitter.com\/CB10tU7ikh— SAP Industrial Manufacturers (@SAPIMC) February 14, 2022Supply chain definition and modelsWe’ve defined supply chain as the functions and processes involved in the flow of products and services to customers. This is far from simple, however.It takes a series of winding steps to get products or services to the end customer. Raw materials must be transported, transformed, and distributed. Products must be manufactured, packaged, stored, and delivered on time.In today\u2019s global marketplace with supply chains that are increasingly intertwined, the supply and demand function has become extremely complex.And customer expectations for a seamless buying experience are higher than ever, so building a resilient, balanced, intelligent, predictive chain is a top priority on every corporate agenda. In fact, it’s essential, as shortages and delays pile up: In a new survey by The Institute for Supply Management, purchasing managers found the average lead times for production materials, capital equipment, and supplies all reached the highest records back to 1987.There are six models of supply chains:Agile model: Optimal for products requiring expertise rather than mass-automation, like specialty or custom-ordered goods and productsContinuous flow model: Provides stability in high-demand areas with little varianceCustom-configured model: A hybrid of the agile and continuous flow models, this model allows for custom configurations during production and assemblyEfficient chain model: End-to-end efficiencies are optimized in this model for intensely competitive marketsFast chain model: Best for responsiveness and getting to market quickly for businesses that change their products frequentlyFlexible model: Offers the ability to meet high-demand moments, as well as low-volume periods, and can easily be switched on or off      The ethical supply chain: Definition, examples, stats                Consumers expect more from the brands they buy from, and an ethical supply chain is now a requirement. Learn what it means and how to get started.      Does supply chain affect ecommerce? Yes. Here\u2019s how. One of the biggest trends affecting supply chains is the rise of e-commerce.According to Emarketer, in 2022 worldwide e-commerce sales will be over $5 trillion for the first time, or a fifth of overall retail sales. Investment in an efficient supply chain is particularly important as e-commerce continues to grow and evolve.Yet, consumers are losing patience with supply chain issues. More than 70% of shoppers either switched brands or switched stores when the products they wanted became unavailable, according to a McKinsey study.Supply chain shortages directly impact e-commerce operations and growth, when e-commerce businesses have to grapple with shipping and production delays, shortages of packing materials, and rising costs. That means planning for holiday inventory, for example, needs to start earlier to deal with potential supply chain disruptions.E-commerce businesses, in turn, impact supply chains in a variety of ways, including big changes in logistics and warehouse capacity. One study found, for example, that e-commerce companies require three times as much warehouse space as traditional retail.      Hurricane season is here: The global supply chain must prepare                Supply chain risk management must be a priority for the global supply chain industry, especially with the start of the US hurricane season, which forecasters say will be dangerous.      Supply and CX: Closely intertwinedNot surprisingly, supply chain success is also directly correlated to the customer experience.Today\u2019s shoppers want real-time updates into their deliveries, which has pushed companies to go even further in investing in supply chain technology that provides better visibility and decision-making capabilities.As a result, supply leaders want a 360-degree view into what customers want and need: According to Gartner, more than 60% of supply chain leaders are investing in developing and maintaining access to voice of the customer (VoC) data, from customer product use data to customer satisfaction data.There\u2019s no doubt that any supply chain crisis is, at the core, a CX issue. That means organizations need to keep a close eye on supply chain issues and communicate fully and with transparency to customers.Never break the chain: Supply trends to watchAlthough e-commerce growth in the United States has returned to pre-pandemic levels, delivery volumes \u2013 and customer expectations around those deliveries \u2013 are higher than ever.Following are some of the top trends to keep an eye on as the world of commerce evolves:Agility via technology: Flexibility and adaptability within tech stacks will become more important as the customer experience continues to drive the future of commerce.Greater focus on last mile delivery solutions: Accounting for about half of total delivery cost, last-mile delivery is also critical to customer satisfaction and retention.Returns supply logistics and management: Customers expect simple and reliable return processes, meaning supply chains must be designed to handle mass returns and peak seasons.Advanced analytics: Real-time data and applications will provide better efficiency and visibility, while data-driven decisions will boost profits and customer loyalty.Sustainability and carbon footprint reduction: Sustainability has created a focus on green consumerism. Watch for more companies to implement eco-friendly efforts into their supply and demand.      Order fulfillment 2022: Delivering much more than product                If a product arrives late or broken, the consumer blames your brand. Discover order fulfillment strategies to help keep ALL of your brand promises, including delivery.      What to expect: Supply chain challenges, twists, and turns in 2022This is not your grandmother\u2019s supply chain. Thanks to the global nature of the modern chain, with organizations spread around the world, any kink can quickly ripple out and cause significant damage to operations and customer service.Supply and demand challenges show no signs of slowing down in 2022. The New York Times recently reported that addressing supply disruption, from shipping delays to rising prices, \u201cwill require investment, technology and a refashioning of the incentives at play across global business.\u201dIn 2022, that means organizations will have to make sure they invest in supply resilience, agility, analytics, automation and, above all, customer-centricity.The federal government may be taking steps to address the supply crisis, with the Biden administration recently outlining a host of new measures, but disruptions won’t cease anytime soon \u2013 meaning that investing in a tech stack that offers the best agility, reliability, and visibility into your supply and demand is likely one of the best investments you can make for your business.  \u2713 Unlock new revenue streams\u2713 Connect supply & demand via D2C\u2713 Win the B2B marketGet started HERE.\u00a0"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2022","item":"https:\/\/www.the-future-of-commerce.com\/2022\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"03","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/03\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"09","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/03\/\/09\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Modern supply chain overview: Definition, models, challenges","item":"https:\/\/www.the-future-of-commerce.com\/2022\/03\/09\/supply-chain-definition-models-challenges\/#breadcrumbitem"}]}]