How would you know whether your supply chain is contributing to your business goals or hindering them? If you think it’s the latter, now is the time to review your business goals, supply chain strategy, and how they fit together. The biggest mistake that supply chain managers make is to separate the supply chain from the business goals. The supply chain is the catalyst for the results you want to get from your business and should be part of your business strategy. That being the case, here are five tips for developing a supply chain strategy.
Tips for Developing a Supply Chain Strategy
To significantly improve your supply chain strategy, consider a top-down approach. This process may seem time-consuming, complex and tedious, but it will reveal areas for improvement and may lead to increased profits. Here are five tips to get you started
Tip 1: Link your business plan to your supply chain strategy.
The fact that you were able to do this in the first place means that there was enough overlap to understand the real impact of your supply chain on your business. If you struggle with the lack of correlation between your supply chain success and your business success, you need to do some more in-depth research and for that you can take help from a China sourcing company.
Remember that supply chain and supply chain strategy is a big concept that covers the entire process. Logistics strategy in the supply chain is where you and your colleagues will get to the bottom of things. And the improvements you make here will most likely lead to profitable growth. However, by restructuring your supply chain management metrics, you may be able to achieve your company’s goals and generate better profits.
An adequate supply chain management strategy enactment system can better address common obstacles, such as
- Strategic challenges
- Economic pressures
- Government regulations
- Operational barriers
Tip 2: Analyze your current supply chain system and strategy
Once you have a general understanding of the current system, the first step is to determine where the problems (if any) lie in the current strategy. As mentioned in the previous tip, this section will involve logistics and individual players such as manufacturers and suppliers. It will be challenging to get enough distance between yourself and the system to identify the problem in most cases. It is usually best to ask an impartial third party to analyze your system. Here are some of the things you can expect from such a professional.
- The thorough system exploration process
- Feedback on the system analysis
- Recommended solutions
Tip 3: Encourage the participation of colleagues and third parties
Often, the cause of a deteriorating supply chain is a lack of communication resulting from a lack of transparency. By involving different people in the supply chain in this analysis process, you should get to the bottom of the problem faster and get multiple solutions from other sources. Here are two goals that should be addressed to ensure a successful supply chain strategy.
Hire/train a group of supply chain management professionals to work together through the supply chain to achieve business goals.
Emphasize the importance and implementation of transparent communication with all parties involved in the supply chain.
Tip 4: Choose a solution
It is best to choose the best solution to your supply chain problem. You’ve analyzed, gathered data, considered ideas, and developed a team to make your supply chain successful. Now it’s your turn to connect the dots and put it all into action. You need to choose a strategy that provides a way to satisfy your customers and increase your profits while solving your current problems.
Tip 5: Execute your strategy
Many people will think that because you’ve spent so much time analyzing, gathering, and planning, executing your plan is like flipping a switch. All the pieces are in place, and all you have to do is turn on the system. But unfortunately, that’s not the case. You need to execute your plan and constantly analyze the design you’ve created. Here are some effective methods that most of reputed procurement consulting firms do:
- Gather feedback from your supply chain
- Create reports to monitor your system
- Communicate with the C-Suite
- Implement the plan in phases
- Adjust the system plan as needed