Simple Supply Chain processes become very complicated as companies start to focus on their core business and outsource various activities to specialized Third Party service providers.
However, in most cases, these processes are outsourced without any integration (business or systems), and actually reducing any form of visibility.
The introduction of these disconnects result in; increased business complexity; degradation of communication, introduction of non-value adding business processes; then we revert back to the safety of our four walls, filled with inventory and cost, due to poor visibility and lack of mutual trust.
At the same time global competition is growing and local customers are becoming increasingly demanding. Product life cycles are shortening with increasing pressure to introduce new products with more features at lower prices. With the advent of e-commerce new and more complex channels to market are evolving. And our current supply chain designs are not capable of coping with the challenges created by the new business paradigm.
We can solve this classic dilemma for you: delight your customers in terms of providing superior supply chain execution and information; whilst simultaneously reduce supply chain working capital and operational costs...
The manner, in which enterprises interact and collaborate with their supply chain partners and competitors, is changing from discrete interventions to continuous real-time integrated decision making and optimisation. With this in mind, enterprises need to redefine their supply chain strategy, before embarking on a very expensive roller-coaster ride to implement advanced technology in the hope of achieving supply chain excellence.
Supply Chain Management is more than technology systems or logistics; it is a new management mind-set to plan and optimise an enterprise. The role and function of each organisational structure (Marketing, Finance, Operations, HR, etc.) is questioned. The use of shared services, outsourcing of non-core business functions, global collaboration and integration of business processes between supply chain partners, need to be included in the construct of a new management model.
Supply Chain Management is the planning, execution, and measurement of all activities involved in acquiring products or services, from the time of need recognition, until the product or service is delivered to the point of use.
Supply Chain Strategy pursues the following business objectives:
- Strategic alliances with suppliers, channel partners, and service providers to reduce risk of supply disruptions that produce delays and waste;
- Integration of logistics, production, and financial planning capabilities to enable global market opportunities and superior supply chain performance;
- Fast, effective deployment of information systems and technology, for maximum competitive advantage at minimum risk;
- Re-engineered or reconfigured business processes to achieve desired service levels, reduce cycle time and costs to maximise market opportunities; and
- Operations excellence to optimise the utilisation of assets at lower costs to improve profitability.