To provide some background information, Degan (2013) provides the most common SCM challenges across the industry today. First, practitioners apply incorrect metric models, failing to manage supply chains at sustainable levels. Second. SCM improvement efforts are misprioritised, failing to allocate resources to areas that create added value. Third, company performance in some activities lags behind other key factors. Fourth, businesses today face limited growth in domestic markets, forcing expansion into emerging markets. This expansion exponentially increases the complexity of its supply chains, to the point that it becomes difficult to identify problem areas. Finally, discovering and retaining SCM talent has become more difficult because this operations management concept is so broad in scope of activities covered. These challenges show how SCM has evolved from a simple and manageable supply chain process to a multi-layered and complex operations management process encompassing national and international processes.
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