Developing Supply Chain Strategy

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Developing Supply Chain Strategy

There are several steps that a company can take when developing supply chain strategy:

Identify and understand the company’s supply chain objectives: This includes determining the company’s overall goals, such as cost reduction, improved efficiency, and increased customer satisfaction.
Analyze the current supply chain: This includes mapping out the current flow of goods and services, identifying bottlenecks and inefficiencies, and evaluating the performance of current suppliers and logistics partners.
Identify key performance indicators (KPIs): These are metrics that will be used to measure the success of the supply chain strategy, such as inventory turnover, on-time delivery, and cost per unit.
Conduct a risk assessment: This includes identifying potential risks that could disrupt the supply chain, such as natural disasters or supplier bankruptcy, and developing contingency plans to mitigate these risks.
Develop a strategic plan: Based on the information gathered in the previous steps, a strategic plan should be developed outlining the steps that will be taken to achieve the supply chain objectives. This plan should include details on logistics, inventory management, supplier relationships, and technology.
Implement and monitor the strategy: Once the plan is in place, it should be implemented and closely monitored to ensure that it is achieving the desired results. This includes tracking the KPIs, making adjustments as needed, and regularly reviewing and updating the plan.
Continuously improve: Continuously monitor the supply chain and make adjustments as needed to improve efficiency and reduce costs. Use the data collected to inform future strategies and decisions.

Quotes pertaining to Supply Chain.

I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.” ~ Jeff Bezos, founder and CEO of Amazon.
“If supply chain had an arch enemy it would be called ‘bad communication’.” ~EverythingSupplyChain.com
“Information is power, and the gain you get from empowering your associates more than offsets the risk of informing your competitor.” ~ Sam Walton, Walmart co-founder.
“For much of Toyota’s history, we have ensured the quality and reliability of our vehicles by placing a device called an andon cord on every production line – and empowering any team member to halt production if there’s an assembly problem. Only when the problem is resolved does the line begin to move again.” ~ Akio Toyoda
“Supply chains are everywhere. From the biggest company in the world to running your household. We all have supply chain experience even if we don’t know it.” ~ EverythingSupplyChain.com.
“You can do so much in 10 minutes time. Ten minutes, once gone, are gone for good. Divide your life into 10-minute units and sacrifice as few of them as possible in meaningless activity.” ~Ingvar Kamprad, IKEA founder.
“Leaders get out in front and stay there by raising the standards by which they judge themselves – and by which they are willing to be judged.” ~ Frederick W. Smith, FedX founder.
“Don’t let the digital supply chain scare you. Big data, IoT, cloud, AI, drones and deep learning are just ways to improve the supply chain.” ~SupplyChainToday.com.