Supply Chain Strategy
An effective supply chain strategy gives you the advantage
In the highly competitive business environment of today, efficiency is essential. While the business strategy focuses on the overall direction that a company wants to go, the supply chain strategy concerns itself with the actual operations within this company to meet its objectives. In a bid to stay competitive, the emphasis in supply chains have shifted – first from a cost focus to a customer focus, and now to that of a strategic process. At its most effective, this supply chain model can be mutually beneficial to the company and its customers when combined with operational excellence.
A business strategy only has meaning when executed and this takes place via the operational components of a company. This is the area in which the importance of a supply chain strategy becomes evident. It becomes a tool to set the operation in motion and support the business strategy. Simultaneously it can focus on delivering lower operational costs and maximising efficiencies.
Another area of focus is the relationship with your supply chain partners, such as suppliers, distributors, your customers and even your customers’ customers. The establishing and nurturing of relationships and partnerships have become an integral part of excelling in an increasingly competitive environment. It all comes down to value creation.
The important consideration is that it should always act as an enabler of the business strategy. If the aim is to operate as a low cost provider, this should also be the focus of the supply chain model. The creation of this strategy should follow the same model as that of the business strategy. Consider your core competencies, focus areas and means of differentiation in the development of this model. A specific function or goal may fit into both the supply chain as well as business strategy, but it only really becomes useful and viable if you have the means to action it effectively.
Enterprise Optimizer® from Business Modelling Associates optimises supply chain networks, rationalises capacity, allocates production and materials to manufacturing plants, optimises staffing and improves logistics performance. Use it to maximise your supply chain strategy. Visit businessmodelling.com and accurately represent your value chain end to end - from the supplier’s supplier to the customer’s customer.
