Supply Chain decisions are both strategic and operational . Are
your Strategic or long term decisions appropriately linked to your
operational needs to provide you with a competitive edge in
Customer Service?
Might a comprehensive Supply Chain review provide new options for
establishing that competitive edge?
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Supply Chain Decisions
Do Your Supply Chain Decisions support your
Customer Service Goals?
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The Supply Chain as a whole involves all areas in your company.
Are your cost related decisions tuned to achieve overall low end use
cost?
Will a “Total” Supply Chain cost analysis hold up when
benchmarked against industry standards? Some key areas include:
- Product Bill of Material
- Buy versus make
- Warehouse location decisions
- Effective use of total spend
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Reducing Supply Chain Costs
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Do you have the key measurements in place to support your Supply
Chain objectives? Have you considered how these metrics balance
each other? Selected key areas might be:
- Inventory levels vs service levels
- Order Fulfillment
- Damages & other waste
- Transportation/Storage/Handling as a % of total cost
- Returned goods
- Stock outs
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Metrics for the Optimized Supply Chain
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The definition is deceptively simple, perhaps, until you examine the
details. Let’s look at the most important points, so you can compare
with your business’ current state:
- Continuous, structured process
- Single set of integrated plans
- Sub-processes…interact continually
- Disciplined way of responding to changes
- Senior management decision making/approval
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Supply Chain Advantage through Sales &
Operations Planning
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