Strategies to improve your Supply Chain are a significant part of your overall business strategy and inventory management. Effectively and efficiently managing logistics and supply chain can help your business improve customer satisfaction and money by minimizing wait times for in-demand products. In other words, it provides you with a real competitive advantage against some companies in your industry.
On the contrary, an ineffective supply chain can be a vast drain on your resources, so it’s crucial to implement some strategic solutions. This way, your supply chain will be as cost-effective and lean as possible.
Below are some of the best strategic solutions you can consider to maximize your supply chain’s efficiency and performance:
Democratic institutions around the world promote the core doctrine that all people are created equally. This is clearly not the case in the world of supplier management. All suppliers are not created equally and they should all be managed with this distinction in mind. As such you can differentiate with Supplier Relationship Management.
This article on how to differentiate with Supplier Relationship Management will look at a model for stratifying and segmenting your supply base within the confines of a structured and formal supplier relationship program (SRP).
Last week I wrote about how my client was reverting back to a vendor-centric approach to drive increased adoption and usage of their products, instead of a customer centric approach.
As we looked to develop the playbook to support their channel partners in the integration of the products, as well as enabling them to sell, train, deploy and support their customers in the usage of the solutions, we fell upon an unlikely analogy; a first date.
What would a vendor-centric versus a customer-centric approach look like on a first date between the vendor and the customer?
Understanding your Customer is the first and most important consideration in designing, defining and refining your company and your go to market business model. And millennials are different.
In the Retail sector one key demographic that demands consideration is that group called Millennials. Whether it be Marketing, Merchandising, Supply Chain, or any other aspect of your Go to Market experience understanding what is important to Millennials is critically important.
Hurricanes! Earthquakes! Terrorist Attacks! Train Derailments! War!Fire! Cyber Attacks! Every one is a disaster.
You see it in the news every minute of every hour of every day. Either some natural disaster or some man made despicable act has occurred somewhere on the planet. The result is death, destruction and disruption.
Everyone is trying to pick up the pieces. They are trying to figure out what has happened, how to come to grips with the catastrophic results, and how to get things going again.
Depending on what the disaster is people can be struggling to know where they can get the basics such as food, water and shelter.
In going door to door trying to sell a Freight Management service, as well as in my experience working in companies, I have had the opportunity to see a variety of ways in which companies, large and small, were managing their Freight and Logistics spend.
Most everyone felt they were doing a good job already. But I’ve seen instances where Freight is one of the top 5 largest expenses within a company. Yet it is managed by one or two people, with no support, and no visibility from upper management.
Depending on the industry your transportation spend can make up anywhere from 1-10% of your company’s total revenue. Aside from the cost impact the service implications of a poor Freight management system are enormous.
So do you have a strategy for managing Freight and Logistics or are you spinning your wheels?
In any company or industry that sells products the cost of the raw materials and components is often the single largest expense. Despite the magnitude of this cost however there is a wide range of focus put on managing this expenditure from proactive and strategic to reactive and tactical. This is all managed by either Commodity Management or Category Management.
In some cases there is a great level of planning applied before a single purchase order is placed. In other cases buying decisions are made subjectively and with very little focus. Further the experience in those buying these goods can vary significantly as well.
Supply Chain is about much more than just negotiating lower materials costs. A well constructed Procurement Strategy will raise the value of the Supply Chain to your company.
How do you manage your materials spend? Are you executing a Buying Strategy or are you just blindly placing purchase orders ?
This period of time, that is this post-pandemic period, will be considered a unique inflection point in the history of Supply Chain Management.
As pandemic related restriction are relaxed, if not eliminated, people and businesses will be trying to get back to “normal“. For many, they will be happy to forget the disruption that the pandemic caused and will go back to their old ways.
For others, they will realize that they must make major improvements to create more robust and resilient and sustainable Supply Chains, leveraging all of the capabilities and technologies that are at hand.
As such, this is Supply Chain’s Moment of Truth. Watch our Video and hear our views as to what has happened, what this means, and what the future has in store.