Supply Chain Strategy
Supply chain complexity is a daunting challenge for supply chain managers. How does one evaluate the myriad of alternatives and balance the competing objectives of many players both inside and outside the firm?
The superior approach is to begin with corporate strategy and financial objectives and from there develop a supporting supply chain strategy. Unfortunately, even today many executives equate the latter with the number, location, size and mission of distribution centers. This view is hopelessly myopic. Contrast it with a contemporary list of strategic issues:
- What is the correct strategic sourcing plan? Should outsourcing be part of it?
- What about new inventory deployment strategies?
- Would new consolidation strategies reduce transportation costs?
- Is manufacturing postponement a good idea?
- Should cross-docking be substituted for selected distribution centers? Which ones?
- What about new port and land bridge options?
- How should supply chain vulnerability and risk be assessed? What are the appropriate risk mitigation strategies?
- What are the impacts of duties and taxes?
- What combination of facilities, missions, flows and service maximizes profit?
- Which markets, channels, and products are most profitable? Which ones are unprofitable?
- How can supply chain and marketing strategies be unified so as to maximize corporate return on equity?
- What is the impact of sustainability issues such as energy consumption, carbon emissions, and manufacturing by-products?
- How should the supply chain be configured to deal with seasonal demand or supply?
- How does one develop a long-term supply chain strategy consistent with corporate growth projections?
Are you surprised by the scope? INSIGHT supply chain strategic tools cover the entire supply chain, from raw material supplier to final customer, and integrate traditional corporate silos such as procurement, manufacturing, finished goods distribution and marketing into a coherent whole that maximizes shareholder value and increases profits.