Technology applications in Indian Supply Chains - Should the Cart be before the Horse?
For many of us associated with Supply Chains in India, it is an interesting period of time. There is a realization that environment is shaping up to offer opportunities but Supply Chain Practices are a step out. It can be a late realization of an opportunity or simply an sub-optimal network or a Supplier relationship which is surrounded with uncertainty.
One of the step out is "Technology" adoption and adaption.
My work across many clients makes me realize that Technology applications are evolving in Supply Chains of India. Either it is a natural journey of the organization which has had technology support its back bone of Supply Chain over years hence the applications are seen in practice & utilized for better decision making. But for many, an ERP, is the highest level of an integrated IT implementation. For these Supply Chains of India the sudden advent & need to implement array of Supply Chain applications is like awakening to a frenzy of wind followed by a Tsunami. Do they have enough time to catch up with a Process driven Technology adoption approach? (that too with the Pay back of Technology now is far faster than that of Process improvements)
The need to drive fact based decision making, the rate of change & the number of variables in the Supply Chain operations increasing every day, reliance on Supply Chain Partners for visibility as also relationship improvement and many other reasons surely make up the case of need to simulate & apply analytics to improve Supply Chain.
The question is : Should Technology shape up Process improvements or Process improvements need to shape up the need for Technology applications?
Traditionally implementing Technology before Process is viewed as Cart before the Horse. An product or service based Supply Chain makes money by selling the product or service and not by technology applications. This view of Process driven Technology is likely to be outdated pretty soon. The dramatic evolution of what the Technology can do to support Supply Chain probably is something which is going to make Cart before the Horse analogy turn true, even if one likes it or not. A Process driven improvement is needed but if Technology appreciation can lead to better ideas of improvement with higher adaptability to Supply Chain ecosystem in lesser time, the efficiency gains will be much higher.
I see the learning curve of Technology much faster than the Learning Curve of Process Improvement Philosophies. (Supply Chain world is still stuck with Lean of 1970's as the most recent Process Improvement Philosophy of Supply Chain, imagine that with Technology!). My personal opinion is that Technology will drive Process.
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