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Strategic Paths to Supply Chain Growth Featured

Strategic Paths to Supply Chain Growth "A Morning in Bali"

It is no longer a secret that supply chains have evolved into a more complex industry that ever. This can be seen in the changes that have occurred in the socio-economic and market dynamics, all of which are aimed at enabling organizations to respond to changing customer needs and outside-in demand-driven environment. Companies must now consider a host of new variables, such as the increasing protectionism and geopolitics. These factors are forcing most of the global supply chain players to re-examine the business continuity plans and risks and embrace new strategies in their sourcing approaches that will guarantee them growth. A strategic supply chain planning that factors in aspects of formulation of business strategy as well as the tactical aspects makes a supply chain firm more valuable. Here are some supply chain strategies that are designed to help supply chain companies grow amid the current competitive business environment.

  1. Develop demand-driven planning and operating model based on real-time demand insights

A correct prediction and contingency planning tools will ensure that you have a complete view and the right response to factors such as political upheavals, supply issues, and natural calamities, that may impact manufacturing, such as the current Covid-19 pandemic. With the right insights regarding the market, companies can restructure their pricing and promotion strategies to fulfill the needs of the customer, move products faster, drive growth, and expand margins for demand. The primary goal of this is to leverage opportunities and mitigate the issues and events that may occur so that the business can succeed.

  1. Develop and adaptive ad flexible supply chain

Once you understand the risk, and demand in the market, you should adapt your supply chain to the changing opportunities ad events in the market. Ensure that there is responsive agility in your plans to address the demands. Unlike the old model that does not respond adequately to the changes as it waits until the end of the month or quarter to change production, the new model should be dynamic and capable of responding to changes instantly. Adopting such a model will eliminate shocks and enhance visibility and collaboration in the value chain.

  1. Optimize the design of products and manage supply chain

Unlike the past when product development and supply chain planning were managed differently, the new era has ushered in an age where these two concepts are managed as one. Doing this allows a supply chain company to stay competitive. The tradition where product designs were solely the work of supply chain planners to figure out how to come up with product ideas and how to build them is coming to an end as it has proven to be inefficient. Collaborative systems and advanced procurement practices help product developers to source the right products upfront based on aspects such as availability, quality, and cost.

  1. Integrate sales and operations planning with business planning

The aspects of finance, strategy, and operations are always disconnected in many supply chain firms. As such, there is a need to bridge this gap by ensuring that the crucial elements of people, technology, and processes are integrated. Doing so allows aspects of finance, such as strategic budgeting and forecasting to be brought together for easy management and smooth decision-making. This allows revenue goals and budgets to be developed and validated against an operating plan and executed accordingly. Consequently, this strategy reconciles the operating strategy with financial goals, therefore making it possible to connect sales and operations. This allows companies to attain a much-needed balance in supply and demand and the alignment with the core goals of the business.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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