I think the most significant problem of SCM in the current global manufacturing business is to focus on minimizing costs at each link in the supply chain without regard for its impact on other links in the chain. The supply chain is a system from raw materials to end consumer. Each link is dependent on the actions created by the policies and procedures and measures of the other links and while that link is very efficient (usually at trimming to save money) the effects are felt across the entire supply chain. The purpose of the supply chain is to be an ever flourishing system which means making money now and in the future, having satisfied customer now and in the future and to have loyal and satisfied employees now and in the future. Suppose we look at Return on Investment of the supply chain. What are the revenues received, the truly variable costs, the operating expenses and the investment at each link in the supply chain? If I make decisions at a link to cut operating expenses does it harm customer service which is linked to revenues received (and throughput) at the end of the chain. Revenues gained (throughput) is not gained until the end consumer buys the product. By a link offering a volume discount on a product, it ensures that that product will not be purchased for a long period of time. Flow and strategic buffering of a wide variety of products is key to a successful supply chain. You might be interested in the theory of constraints portal offered on the TOCICO (theory of constraints international certification organization) website. The website provides free knowledge on the application of TOC to many different areas including supply chain, manufacturing, project management, measures, thinking processes, healthcare, government, etc. See:

http://www.tocico.org/

Click on the tab, success stories and select from 13 different portals. Each portal generally has a tutorial on that topic then several organization case studies (Delta Airlines, US Marines, US Air Force, Tata Steel, Dr. Reddy's Lab, etc.) talking about the results of their implementation, challenges, problems, etc. You might also read Demand driven metrics at amazon: http://www.amazon.com/Demand-Driven-Performance-Debra-Smith/dp/0071796096/ref=sr_1_1?s=books&ie=UTF8&qid=1397395837&sr=1-1&keywords=Demand+driven+metrics

for a discussion of strategic buffering and metrics in a supply chain.

Back again to your question, most "problems" identified by the various links in a supply chain are the effects of the core problem of each link focusing on cost at that specific link instead of how to operate effectively to achieve the goal of an ever flourishing organization.

I know this answer will be quite different from other responses BUT many supply chains have flourished by using the TOC principles across the supply chain and the thinking processes to identify the core problem of a specific supply chain.

Best regards,

Jim

The major failure is mis-alignment of different links inn the entire supply chain . Each link has its own set of objectives and constants. It has become increasingly difficult to bring all the links (read as stakeholders) to a common platform .

I thank James Cox for his in-depth reply and appreciate the comment by Prof Deshmukh on the issues that I addressed. As what James had mentioned that many supply chains flourished under the TOC principles, I would explore this further including the Constraint Theories as you proposed it. However, I could never disagree on what Prof Deshmukh commented that it is the major failure of mis-alignment of different link in the entire supply chain that caused such problem. Having the links to be connected is not an easy passage to success and to ensure such linking is organized, the company needs huge system back-up and excellent Human Capital Management for the smooth running of the supply chain. Global logistics need that badly and the same with global manufacturing that link all with the supply chain system. That means major investments are required. The question is whether the companies or manpower is ready for the big challenge especially for manufacturing groups?

I would venture that the successful management of  SCM projects is vital to the success/failure of SCM.    The results of a 3 year multiple case study on this topic can be found in our paper: "The selection of supply chain management projects: A case study approach".

Article The selection of supply chain management projects: A case st...

Thanks Mathieu......quite interesting and informative paper......