Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.
The success of your business is inextricably linked to the performance of your supply chain. Similarly, it can be safely assumed that in many cases, businesses that fail, do so because of financial problems—a fact which makes the following statistic also worthy of consideration: Here are a few more sobering facts, to complete the big picture of business success and its dependency on supply chains.
Supply chain strategy is critical to business success, but is often underestimated in its importance and hence receives less strategic attention than other areas of operation. So where does this all lead us? Each of the following seven sections in this post highlights how specific elements of supply chain management can contribute to success or failure of a commercial enterprise.
In other words, the majority did not recognise the need for close alignment between supply chain and general business strategies. A Properly designed supply chain strategy is an enabler for achieving commercial goals and consequently, corporate success.
It means that your supply chain strategy should be designed in such a way as to support the overall strategy of your business.
In far too many organisations, this is unfortunately not the case. So if you want to be sure of business success, review your supply chain strategy.
Supply Chain Network Design Along with the design of supply chain strategy, the design of the supply chain itself, especially the part which deals with outbound distribution from plants or warehouses, is instrumental in the success or failure of businesses.
For the rest, there may be no predefined structure for moving materials and products through the stages of fulfilment.
Typically, networks evolve through a series of discrete changes and developments, each addressing needs as they arise and few considered in terms of creating a strategically integrated supply chain. You may well find opportunities for savings and service improvements, perhaps enough to substantially improve the chances of business success.
Supply Chain Service Performance Profitable revenue growth is a sure sign of business success, and one of the most important factors driving profitable growth is customer service and most importantly, customer satisfaction.
Customer satisfaction is highly dependent on the supply chain and to be successful, your business must manage its supply chain with that in mind. That means the customer must be a primary focus when considering supply chain strategy, network design and performance management.
To put that claim into some perspective, consider this data revealed by Gartner from research conducted in That should be sobering news for any business not yet focused on supply chain excellence as a lever for business success.
The following supply chain performance issues can all have a negative impact on customer satisfaction and therefore, hamper the success of your business: Provided you can identify the root causes and begin to address them, you will be on your way to a more successful supply chain, and to creating an enhanced customer experience.
In turn, operational performance and business success will be under greater control and will lie less in the hands of Lady Luck. If your supply chain strategy has been well considered and is aligned with business goals, and your distribution network is designed to meet the strategy, some of the problems in the list above might well have discrete causes that can be directly addressed.
For example, supplier performance issues can cause problems with inventory, order fill; on-time delivery performance and customer-order lead times.
Supply Chain Costs The cost of meeting demand is one of the most telling ways in which the supply chain matters to business success. Supply chain outlay can make up a large proportion of product costs, while excessive inventory in the system can tie up working capital and stifle cash flow.
Investigating the costs of serving customers is one way to understand the way supply chain costs affect business success. By understanding which of your customers are unprofitable, or which ones deliver least profit, you can take steps to reduce the cost of serving them.
The same applies to certain products in your range, some of which will inevitably incur more costs than others in the process of manufacturing or buying, storage, and delivery to customers.
Indeed, rather than focusing only on cost-reduction, your emphasis should be on trimming away processes and activities which add no value. Some of the ways in which product costs can be inflated by poorly managed supply chain expenditure are listed below:Every quality professional needs a handy reference of quality terms, acronyms and key people in the history of quality.
This glossary—which includes many updated and revised terms, along with nearly 50 new entries—derives from a variety of sources, including books, periodicals, websites and quality experts.
Global customer satisfaction: mulitnational customers who demand the same product, service and quality at various locations around the world – for example, customers of the Sheraton Hotel chain expect and receive the same level of service at all its hotels around the world.
Get up-to-the-minute environmentally-friendly (or egregiously unfriendly) car news, reviews, high-quality photos and commentary about living green. So if you want to be sure of business success, review your supply chain strategy. If it doesn’t align with the objectives of your business, you have some work to do.
If it doesn’t align with the objectives of your business, you have some work to do. Automotive parts and service chain Pep Boys, for example, sets high customer service standards for Agility, its global third-party logistics (3PL) provider.
“We expect Agility to be on top of each part of our supply chain, every day,” says Joshua J.
Dolan, director of global . The “three Cs” of conversational commerce. The areas where conversational commerce can be employed most effectively and enable a great customer experience are within commerce, content and care.
Commerce (purchase and reservations), i.e., placing an order, booking a car service or purchasing event tickets; Content (information and .