Pathway to Best in Class Supply Chains
We are often asked what are the steps in best in class supply chains so we have summarised our thoughts below there are fundamentally 5 stages to evolved an optimised supply chain:
• Stage 1 Basic Supply Operations – Cost, spend/ savings analysis, supplier management, local leverage, quality assurance, efficient supply operations
• Stage 2 Differentiated Supply Tactics – Contract strategy, make or buy decisions & insourcing or outsourcing, regional and global sourcing, commodity focus, cost analysis, regional and global leverage, a good procurement strategy, life-cycle cost improvement.
• Stage 3 Supply Chain Improvements – Supply chain strategic competitiveness and improvement teams, process mapping and alignment, supplier input into new products/services, strategic supplier alliances, process improvement, best practices aimed at reducing cycle time, capital employed and total cost of ownership.
• Stage 4 Integrated Supply Chains – Enhance customer response, pro-active outsourcing, supplier key strengths analysis, cross-enterprise decisions, supply chain core competencies, world class supply chain links, alliances unleash, improved value to customers.
• Stage 5 Optimum Value Chains – Value optimisation, differentiated users/stakeholders, customer value driver analysis, high value adds, new products, maximum value/cost ratio.
Each of the elements require absolute focus to deliver the benefits .