Friday, 9 December 2016

About supply chain integration and strategy

The success of a business relies upon the strength of the efficient integrated supply chain. Much of the competition found between businesses these days lies in the supply chains. It is essential to get the products to the customers when they want it. In order to achieve this, all partner companies in supply chains have to work together to create and execute the supply chain strategy that satisfies customers while bringing in a suitable return. 

All partners need to be linked to ensure the goods or services flow efficiencies to end consumers. This is only achievable by collaborating with the customers, trading partners, service providers and suppliers. The main goal is to ensure product flow as the customers require it to flow and that the flow can respond dynamically to any changes that customers make to their orders.   In order to achieve this it’s necessary to:
  • Know the boundaries of the supply chain
  • How many supplier tiers are included in the supply chain
  • What service providers play an important role in the chain flow outcomes
  • The location of the decoupling point
  • The human and physical resources required
Managers must be aware of the other winners. These are the parameters that customers consider to be critical. They could be the quality of the products or the speed of delivery or even products available at the lowest cost to them. Managers that know order winners are able to design a supply chain that is able to meet them by making strategic decisions.

Supply chains have to be integrated. Information must be shared between partners and customers and flow through the chain without errors.  By sharing information, managers are able to increase the accuracy and the speed of the entire chain. With synchronised operations it’s possible to reduce the size of the inventory and remove duplicated practices. The chain becomes efficient, responsive and as a result costs are cut and times are reduced.

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