Saturday, October 30, 2010

Systematic Planning for Supply Chain

Perhaps the most misunderstood and most important thing for a company is its SCM. There are 3 levels of thinking about efficient supply chain

1. Corporate / Financial level - Think about what your real business, what are profit and cost drivers, more important what are growth drivers


2. Marketing Level - 4 Ps, how to take edge in market, how will this contribute growth of individual product line. Most important - Right Product portfolio - which product line to exit, which to reduce and which to add

3. Logistics / Operations Level - Operations cost/ Standardization (6 Sigma) / efficiency / safety security / outsourcing decisions / contracts with 3 party services / regulations / taxation and more importantly transportation taxes


Though supply chain is a very broad term, but if we focus our thinking to each of these levels individually and then in an integrated manner, SCM can become an effective edge over competitors.

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