A manager or business owner always tries to create tactics or mechanisms to integrate the commercial resources of his organization, optimize his logistics services and reduce the costs involved, without falling productivity. That is why the Supply Chain is also changing and evolving all the time. Everything depends on the lines of products to be dispatched, the available collection and the specificity of the customers. Do you have questions when determining your methods and logistic plans? Learn more about everything that involves this ingenuity and the reasons to give full attention to an excellent planning of your Supply Chain in this post that we have prepared for you. Follow us!
Why do we have to carry out a Supply Chain strategy?
Over time, new production techniques and know-how arise in the market. And these things will inevitably affect organizations in many ways, including in logistics. Otherwise, if there is no such level of adaptation, companies would lose market space, since they would have poorer services compared to their competitors. If the manager rationalizes and anticipates what he needs to change in his logistics strategy, he will understand how much he should invest and how he could overcome the new market difficulties by completing job and organizational changes within his company to ensure that the quality of its services is not reduced.
What does the planning of a Supply Chain strategy comprise?
Generally speaking, a manager should start planning his Supply Chain strategy, paying attention to four factors characteristic of his organization:
- The strategic aspect: when observing the company’s objectives and those technical deliberations of its supply chain, the Supply Chain planning must study and re-analyze the ways in which the logistics organization collaborates so that the demands and flows are well fulfilled.
- The structural aspect: the Supply Chain strategy must verify if the structural issues are in order and in full and proper functioning, such as the best quantity of warehouses and distribution centers for its product stock, how many items must be manufactured in one specific place, which is less costly to get to the destination addresses.
- The functional aspect: one must re-examine the ways in which each function or position, evaluated individually, can achieve the excellence of performance.
- The implementation aspect: the success of a Supply Chain strategy can be evaluated by how it is implemented within the organization; this project for effectiveness may include several new practices and different procedures for the company’s culture till then, which will require a change management program.
What components should be examined in the Supply Chain?
By evaluating the four aspects above, it is noticeable that anything that may jeopardize potential costs or optimization of supply chain services should be verified. There are different areas for each company niche or segment to be considered, but quite generally the components to be checked are as follows:
- Transport: Are current vehicles and levels of transport services adequate?
- Outsourcing: How outsourcing is engaged to improve your supply chain? Could a partnership with a third party company improve their service levels?
- Logistics Systems: Do your current logistics systems provide the level of data you need to successfully implement your Supply Chain strategy, or will you need new, more reliable data?
- Competitors: What do your competitors offer? Can changes to your customer service improve the conditions of your services?
- Collection of information: how is the information that drives your strategic decisions collected? Is there a delay or does it all happen in real time? What data is needed for your decisions to be made without error?
- Evaluation strategy: Are the purposes of your Supply Chain aligned with the company’s corporate goals and strategies?
Proper monitoring of the Supply Chain strategy implementation is essential for organizations to be able to maintain the quality of their service levels despite the changes that are brought to the company’s staff and infrastructure. And now that you know the strategies to apply, put them into practice! Leave your comment telling us what you think of them. And any questions that still remain, write here and join the conversation.
ORBIT Logistics is one of the world’s leading suppliers of inventory management solutions (VMI – Vendor Managed Inventory a nd SCM) and real-time data acquisition.Our company, founded in 2003, provides a modular system for supply chain management and a tomation, serving global customers from offices in Leverkusen (Germany), Atlanta (USA), Sao Paulo (Brazil) and Shanghai (China). A highly qualified team of more than 40 engineers and technicians offers customized turnkey solutions for
process management and monitoring.
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