Building Blocks of Supply Chain Strategy!

Supply Chain Strategy

A supply chain is made up of an interconnected network of suppliers that all function together to deliver products or services to customers efficiently. For a supply chain to run smoothly it needs to be well managed under the right strategy for your business objectives.

Below are three building blocks of a well-managed supply chain strategy to help you boost efficiency and lower costs. 

Demand Planning

Rather than creating the demand, businesses need to be able to respond quickly to customer demand. This means businesses should be prepared to adapt to unforeseen situations quickly and efficiently. 

Demand planning helps your business understand the current demand for a good or service and predict future demand. Look at past trends, historical data, and other analytics to predict future customer demand. 

Demand planning enables businesses to stock the proper amount of inventory and maintain correct inventory levels. The use of strategies like Just In Time (JIT) inventory management and other lean manufacturing approaches are useful in meeting and adapting to demand.

This type of strategy is also cost-effective as it enables you to cut down on warehousing or storage costs and reduces the likelihood of excess stock or out-of-stock items. 


Supplier consolidation is a major player in supply chain strategy. Analyzing a supplier’s performance to help rein in your business’s core suppliers helps cut down on unnecessary spending. Plus, by consolidating suppliers you will be strengthening your relationships with the suppliers, vendors, and manufacturers that truly have your business goals in mind.

Many third-party logistics providers offer supplier management services. These services may even be part of an online portal for your convenience. Supplier management is a strategic way to streamline your supply chain while driving efficiency and cost savings in the process.  


A visible supply chain increases its overall effectiveness as businesses are able to monitor and optimize their efforts according to the changes in demand and other outside factors.

Because of the recent instability in the global supply chain network, due to the rippling effect of the global pandemic, visibility is paramount to understanding the issues in your supply chain and devising a strategy to solve them. 

Use barcoding and order tracking technology to gain insights into your supply chain from procurement to order fulfillment. View your supply chain in real-time to give you the power to adapt as demands shift. Constantly optimize your supply chain process to ensure you are getting the most out of your network. 


An effective supply chain strategy improves efficiencies and reduces costs for your business. And as the supply chain has increasingly grown more complicated and less predictable, businesses need to rise to the challenge and take hold of their supply chain strategy.

To ensure your supply chain network is functioning at its best, it is worth considering the above building blocks to help you manage your supply chain in the most efficient and effective way possible.

Plan for changing demands, consolidate your network either internally or using a third-party provider to maximize efficiency, and increase visibility into all areas of your supply chain network.

Supply Chain Strategy article and permission to publish here provided by Boris Dzhingarov. Originally written for Supply Chain Game Changer and published on June 30, 2022.