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SCM strategy
Quite often supply chain strategy is discussed and just as frequently it is confused with supply chain management. In real terms, SCM strategy is about reviewing the end to end supply chain and looking for areas that add value, create efficiency and furthermore increase profitability to be able to compete effectively in today’s demanding and ever globalising communities.
In reviewing a supply chain strategy we are not
looking for quick wins or immediate cost savings, what we do want is
to link business objectives and understand customer desires,
creating a solution for the end to end supply chain that is
collaborative, best practice, sustainable and overall supports the
delivery of good customer service and increased supply chain
profitability.
Some areas we evaluate with a strategy are:
· Inventory management (location and size)
· SKU offering – does it match desires
· Lead time compression (off-shoring vs. re-shoring)
· Outsource versus in-source
· Collaborative supply chain planning (supplier integration)
· Sustainable supply chain transportation