Companies have made enormous investments in supply chain systems, yet the ultimate goal remains elusive. Most businesses today do not operate high velocity supply chains and are not able to respond to supply chain changes as quickly and efficiently as should be possible. And speed is only part of the challenge. Many businesses outsource some production and fulfilment activities, adding complexity and reducing day-to-day control and visibility.
Most problematic, today’s SCM suites have strong tools for strategy, planning and execution, but inadequate tools for real-time management of supply chain operations. A gap between traditional supply chain planning (SCP) solutions and supply chain execution (SCE) applications is preventing businesses from attaining a high level of production visibility and supply chain responsiveness. This gap is slowly narrowing as a new software segment emerges. Supply Chain Operations (SCO), as we call this nascent market, bridges the gap between planning and execution, proactively managing the operational phase of the supply chain. This software automates responses and recommendations based on daily changes that impact the supply chain. Supply Chain Operations applications keep the business rolling while guiding activities to avoid inefficiencies and problems. In achieving this aim, three main areas in SCO become important focus; they are Supply Chain Collaboration, Supply Chain Visibility, and Supply Chain Event Management.
There are currently no public companies that cater primarily to SCO, as this is a nascent, but rapidly growing market. For this reason, potential customers will need to broaden their horizons in terms of evaluating currently available offerings.
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