Trends in Supply Chain Management and Collaborative Commerce

Supply chain management is a constantly evolving field. In this chapter, we will discuss some of the latest trends in supply chain management and collaborative commerce.

1. Just-in-Time (JIT)

JIT is a production strategy that aims to improve a business’s return on investment by reducing in-process inventory and associated carrying costs. JIT is a pull system, which means that production is based on customer demand. This is in contrast to a push system, where production is based on a forecast of future demand.

2. Lean Manufacturing

Lean manufacturing is a production strategy that focuses on eliminating waste in the manufacturing process. Waste can be defined as anything that does not add value to the product. There are seven types of waste in manufacturing:

  • Overproduction: Producing more than is needed.
  • Waiting: Waiting for the next step in the production process.
  • Transportation: Unnecessary movement of materials.
  • Processing: Unnecessary processing of materials.
  • Inventory: Excess inventory.
  • Motion: Unnecessary movement of people.
  • Defects: Products that do not meet quality standards.

3. Vendor-Managed Inventory (VMI)

The adoption of supply chain management trends by businesses in Nepal is still in its early stages. While many larger businesses are using a variety of supply chain management techniques, many smaller businesses are not.

Some of the most common supply chain management trends that are being used by businesses in Nepal include:

  • Just-in-Time (JIT): JIT is not yet widely used in Nepal. This is due to a number of factors, including a lack of reliable suppliers and a lack of a strong transportation infrastructure.
  • Lean Manufacturing: Lean manufacturing is also not yet widely used in Nepal. This is due to a number of factors, including a lack of skilled personnel and a lack of a strong manufacturing base.
  • Vendor-Managed Inventory (VMI): VMI is not yet widely used in Nepal. This is due to a number of factors, including a lack of trust between suppliers and retailers.

There are a number of challenges that businesses in Nepal face in implementing supply chain management trends. These challenges include:

  • Cost: The cost of implementing supply chain management trends can be a barrier for many small businesses.
  • Lack of skilled personnel: There is a lack of skilled personnel in Nepal who can implement and manage supply chain management trends.
  • Lack of awareness: Many businesses in Nepal are not aware of the different supply chain management trends that are available and how they can be used to improve their operations.